City of Miami Gardens 21-052 Agenda Cover Memo Meeting: City Council - Apr 14 2021

Department Sponsored By Mayor and City Council Mayor Rodney Harris

Agenda Item Title A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MIAMI GARDENS, FLORIDA, AUTHORIZING THE CITY MANAGER TO EXECUTE AN MEMORANDUM OF FLORIDA SOUTH AND STADIUM HARD WITH UNDERSTANDING ROCK MOTORSPORTS, LLC, RELATING TO CERTAIN CONDITIONS APPLICABLE TO UPCOMING FORMULA 1 EVENTS AT HARD ROCK STADIUM OUTLINED HEREIN; PROVIDING FOR THE ADOPTION OF REPRESENTATIONS; PROVIDING FOR AN EFFECTIVE DATE.

Staff Summary The City of Miami Gardens (the “City”) is the third largest city in Miami-Dade County with approximately 113,000 residents. The City is the proud home of the Hard Rock Stadium sports complex (the “Stadium”), which hosts Miami Dolphins and University of Miami football, the Orange Blossom Classic, Jazz in the Gardens, Rolling Loud, the Orange Bowl and the Miami Open. Since 2015, approximately $750,000,000 in private funds have been invested into the Stadium by Stephen M. Ross to modernize the a globa as venue toworldattract - destinationevents, class l entertainment including Super Bowls, College Football championship games, and World Cup soccer matches to the City and South Florida.

This investment has generated economic benefits for the City in the form of increased spending at local businesses, and large-scale infrastructure improvements, including pedestrian bridges to improve traffic flow and the provision of a setback needed for the future development of the North Corridor transit project.

The City and South Florida Stadium LLC d/b/a Hard Rock Stadium (“HRS”) have a history partnering - highon of City's the benefitting initiatives impact community residents and businesses, including education specialty programming (e.g., hospitality and sports management), mentorship programming (e.g., CityYear at Carol City and Norland High Schools), direct impact programs (e.g., Miami Dolphins Food Relief Program), and the hosting of community events at the Stadium (e.g., the Dolphins Cancer Challenge and the 5,000 Role Models Police & Youth Conference).

The City wishes to continue its partnership and cooperation with HRS and its affiliate, South Florida Motorsports, LLC (“Promoter”), in hosting a world-class annual motor vehicle Formula 1 Grand Prix annually at and around the Stadium (collectively, the “Event”) in the City in a manner that provides substantial economic and community benefits that directly support City residents and businesses, including defined opportunities for local residents and locally-owned businesses to participate in the Event and promote the City as the first majority African-American city to host a Formula 1 race of the 23 cities around the world that host a Formula 1 Grand Prix, as currently sanctioned by the Federation Internationale de l'Automobile.

The City also wishes to ensure that HRS and the Promoter will make certain commitments regarding (A) Event operations, including with respect to track design, noise mitigation, air quality monitoring, and racing hours that minimize any disruptions to local schools and neighborhoods; and (B) ensuring that the substantial regional economic benefits generated by the Event include direct community benefits for the residents and businesses of the City. The parties intend to enter into a Memorandum of Understanding (“MOU”) to provide for the City’s cooperation with, and support of, HRS and the Promoter in connection with the preparation for, and execution of, the Event, including expeditious issuance of all necessary permits, consents and other approvals deemed necessary to effectuate the Event and its related activities in the City beginning with the first Event (currently contemplated to take place in 2022).

The MOU between the parties will provide as follows:

1. Race Planning & Operations. In order to mitigate disruption to the local community leading up to and during the Event, the following mitigation measures shall be implemented by the City and the Promoter:

a. The Event may take place at and around the Stadium, but no portion of the proposed track shall utilize Northwest 199th Street or N.W. 27th Avenue;

b. No race shall start: (a) prior to 2:30pm (ET) on any weekday on which public schools are in session prior to 2:30pm (ET); or (b) after sunset in the City on any day;

c. Noise mitigation barriers of industry quality shall be erected on the north side of any section of the track adjacent to the Snake Creek Canal to protect the City's residents adjacent to Snake Creek Canal;

d. The Promoter shall provide for industry standard air quality and noise monitoring during the Event;

e. The Event shall include variable message signage around the Stadium alerting residents to the dates of the Event and any applicable road closures, as well as a dedicated shuttle bus program designed to efficiently transport rideshare customers to an off-site hub to help reduce the number of rideshare vehicles around the Stadium after the Event; and

f. Promoter and HRS shall be allowed to commence demolition and site work, subject to ongoing inspection by the City, as the construction plans for the Event facilities are being reviewed, processed, and approved by the City.

g. To ensure effective coordination with City resources, the Promoter and HRS shall; (a) operate a multi-jurisdictional command center at the Stadium during each event designed to coordinate communications and operations amongst applicable City, County, and State resources; and (b) meet and confer with the City Manager and staff not more than thirty (30) discusEvent each City’s following the recapdays and to s the and egress as ingress, as program, benefits community well management plans, as well as the results of the required air/noise monitoring and mutually-agreed upon measures that could be taken to improve each of the foregoing.

2. Community Benefits. In order to ensure a lasting and meaningful positive impact the Event, with connection in businesses residents City for and following community benefits shall be provided by the Promoter:

a. The Promoter shall provide Five Million Dollars ($5,000,000.00) of funding for community benefits programs to be administered by the City with such funding to be provided as follows: (1) One Million Dollars ($1,000,000) shall be funded not later than thirty (30) days followingin connection with the first Event with fifty (50%) due not later than thirty (30) days prior to the first Event and fifty (50%) due not later than thirty (30) days first (2) the Forty Hundred after - Four Four Event and ; Thousand Four Hundred Forty-Four and 44/100 Dollars ($444,444.44) shall be funded in the same manner (i.e. 50% thirty days prior to each Event and 50% not later than thirty days after each Event within thirty (30) days following for each of the next nine (9) subsequent annual Events (it being understood that any prepayments shall be credited towards the following year’s Promoter financial commitment if the applicable Event is cancelled for any reason, such as force majeure), (and anthat agrees acknowledges amounts dollar City y the and provided by Event corporate sponsors and/or Formula 1 dedicated directly to the City of Miami Gardens for Miami Gardens residents or businesses will count against this $5,000,000.00 commitment, while any such amounts dedicated to third parties (i.e., other than the City) for the benefit of Miami Gardens residents or business will count against this commitment only if mutually agreed upon by the parties)

b. The Promoter shall ensure that Formula 1 implements, through the City’s Parks and Recreation Department, the “F1 in Schools” STEM program (or successor STEM program) in the City at no cost to the City, for both elementary, middle and high school students as well as behind- the-scenes learning he tours for students and interaction with t motorsports teams at the Event;

c. The Promoter shall provide at least five (5) paid Event internships to high school and/or college students and five (5) paid internships for graduate students attending schools located in the City in connection with each Event, with such internships to be structured in a way that prepares and empowers- time internship participants to pursue full employment opportunities with the provider;

d. The Promoter shall create and administer a program that allows local restaurants t nonand-alcoholic food of in the participate o sale beverages, especially authentic and local products, at the Event, without a buyout fee;

e. The Promoter shall provide for an allotment of discounted tickets to be made available for the Event for City residents;

f. HRS shall extend the Jazz in the Gardens agreement entered into by and between the City and HRS by a period of ten (10) years to be coterminous on the Event host with agreement Promoter’s to Memexecuting of orandum to the terms. similar substantially Prior Understanding, the parties will negotiate in good faith with respect to sponsorships, vendors, parking and other terms related to Jazz in the Gardens; and

g. Said MOU shall continue in effect for so long as Promoter and HRS continue to host Formula 1 racing at the Stadium.

Fiscal Impact

See the above "Community Benefits" for complete details.

Recommended Action That the City Council adopt the attached Resolution

Attachments Resolution 2021 - Hard Rock Stadium Formula

1 RESOLUTION NO. 2021____ 2 3 4 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF 5 MIAMI GARDENS, FLORIDA, AUTHORIZING THE CITY 6 MANAGER TO EXECUTE AN MEMORANDUM OF 7 UNDERSTANDING WITH HARD ROCK STADIUM AND SOUTH 8 FLORIDA MOTORSPORTS, LLC, RELATING TO CERTAIN 9 CONDITIONS APPLICABLE TO UPCOMING FORMULA 1 10 EVENTS AT HARD ROCK STADIUM OUTLINED HEREIN; 11 PROVIDING FOR THE ADOPTION OF REPRESENTATIONS; 12 PROVIDING FOR AN EFFECTIVE DATE. 13 14 15 WHEREAS, the City of Miami Gardens (the “City”) is the third largest city in

16 Miami-Dade County with approximately 113,000 residents, and

17 WHEREAS, the City is the proud home of the Hard Rock Stadium sports

18 complex (the “Stadium”), which hosts Miami Dolphins and University of Miami football,

19 the Orange Blossom Classic, Jazz in the Gardens, Rolling Loud, the Orange Bowl and

20 the Miami Open, and

21 WHEREAS, since 2015, approximately $750,000,000 in private funds have been

22 invested into the Stadium by Stephen M. Ross to modernize the venue as a global

23 entertainment destination to attract world-class events, including Super Bowls, College

24 Football championship games, and World Cup soccer matches to the City and South

25 Florida, and

26 WHEREAS, this investment has generated economic benefits for the City in the

27 form of property tax collections, and large-scale infrastructure improvements, including

28 pedestrian bridges to improve traffic flow, and

29 WHEREAS, the City and South Florida Stadium LLC d/b/a Hard Rock Stadium

30 (“HRS”) have a history of partnering on high-impact community initiatives benefitting the

31 City's residents and businesses, including education specialty, mentorship 32 programming, direct impact programs, and the hosting of community events at the

33 Stadium, and

34 WHEREAS, the City wishes to continue its partnership and cooperation with HRS

35 and its affiliate, South Florida Motorsports, LLC (“Promoter”), in hosting a world-class

36 annual motor vehicle Formula 1 Grand Prix annually at and around the Stadium

37 (collectively, the “Event”) in the City in a manner that provides substantial economic and

38 community benefits that directly support City residents and businesses, including

39 defined opportunities for local residents and locally-owned businesses to participate in

40 the Event and promote the City as the first majority African-American city to host a

41 Formula 1 race of the 23 cities around the world that host a Formula 1 Grand Prix, as

42 currently sanctioned by the Federation Internationale de l'Automobile, and

43 WHEREAS, the City wishes to ensure that HRS and the Promoter will make

44 certain commitments regarding (A) Event operations, including with respect to track

45 design, noise mitigation, air quality monitoring, and racing hours that minimize any

46 disruptions to local schools and neighborhoods; and (B) ensuring that the substantial

47 regional economic benefits generated by the Event include direct community benefits

48 for the residents and businesses of the City.

49 WHEREAS, the City Council resolves that the Event will include the measures

50 outlined below in accordance with a Memorandum of Understanding (“MOU”) with HRS

51 and the Promoter as follows:

52 1. Race Planning & Operations. In order to mitigate disruption to the 53 local community leading up to and during the Event, the following 54 mitigation measures shall be implemented by the City and the 55 Promoter: 56 57 a. The Event may take place at and around the Stadium, but no 58 portion of the proposed track shall utilize Northwest 199th Street 59 or N.W. 27th Avenue;

2 60 61 b. No race shall start: (a) prior to 2:30pm (ET) on any weekday on 62 which public schools are in session prior to 2:30pm (ET); or (b) 63 after sunset in the City on any day; 64 65 c. Noise mitigation barriers of industry quality shall be erected on 66 the north side of any section of the track adjacent to the Snake 67 Creek Canal to protect the City's residents adjacent to Snake 68 Creek Canal; 69 70 d. The Promoter shall provide for industry standard air quality and 71 noise monitoring during the Event; 72 73 e. The Event shall include variable message signage around the 74 Stadium alerting residents to the dates of the Event and any 75 applicable road closures, as well as a dedicated shuttle bus 76 program designed to efficiently transport rideshare customers to 77 an off-site hub to help reduce the number of rideshare vehicles 78 around the Stadium after the Event; and 79 80 f. Promoter and HRS shall be allowed to commence demolition 81 and site work, subject to ongoing inspection by the City, as the 82 construction plans for the Event facilities are being reviewed, 83 processed, and approved by the City. 84 85 g. To ensure effective coordination with City resources, the 86 Promoter and HRS shall; (a) operate a multi-jurisdictional 87 command center at the Stadium during each event designed to 88 coordinate communications and operations amongst applicable 89 City, County, and State resources; and (b) meet and confer with 90 the City Manager and staff not more than thirty (30) days 91 following each Event to discuss and recap the City’s community 92 benefits program, as well as the ingress, egress and 93 management plans, as well as the results of the required 94 air/noise monitoring and mutually-agreed upon measures that 95 could be taken to improve each of the foregoing. 96 97 2. Community Benefits. In order to ensure a lasting and meaningful 98 positive impact for City residents and businesses in connection with 99 Event, the following community benefits shall be provided by the 100 Promoter: 101 102 a. The Promoter shall provide Five Million Dollars ($5,000,000.00) 103 of funding for community benefits programs to be administered 104 by the City with such funding to be provided as follows: (1) One 105 Million Dollars ($1,000,000) shall be funded not later than thirty 106 (30) days following in connection with the first Event with fifty 107 (50%) due not later than thirty (30) days prior to the first Event 3 108 and fifty (50%) due not later than thirty (30) days after the first 109 Event; and (2) Four Hundred Forty-Four Thousand Four 110 Hundred Forty-Four and 44/100 Dollars ($444,444.44) shall be 111 funded in the same manner (i.e. 50% thirty days prior to each 112 Event and 50% not later than thirty days after each Event within 113 thirty (30) days following for each of the next nine (9) 114 subsequent annual Events (it being understood that any 115 prepayments shall be credited towards the following year’s 116 Promoter financial commitment if the applicable Event is 117 cancelled for any reason, such as force majeure) (and the City 118 acknowledges and agrees that any dollar amounts provided 119 by Event corporate sponsors and/or Formula 1 dedicated 120 directly to the City of Miami Gardens for Miami Gardens 121 residents or businesses will count against this $5,000,000.00 122 commitment, while any such amounts dedicated to third parties 123 (i.e., other than the City) for the benefit of Miami Gardens 124 residents or business will count against this commitment only if 125 mutually agreed upon by the parties) 126 127 128 b. The Promoter shall ensure that Formula 1 implements, through 129 the City’s Parks and Recreation Department, the “F1 in Schools” 130 STEM program (or successor STEM program) in the City at no 131 cost to the City, for both elementary, middle and high school 132 students as well as behind-the-scenes learning tours for 133 students and interaction with the motorsports teams at the 134 Event; 135 136 c. The Promoter shall provide at least five (5) paid Event 137 internships to high school and/or college students and five (5) 138 paid internships for graduate students attending schools located 139 in the City in connection with each Event, with such internships 140 to be structured in a way that prepares and empowers 141 internship participants to pursue full-time employment 142 opportunities with the provider; 143 144 d. The Promoter shall create and administer a program that allows 145 local restaurants to participate in the sale of food and non- 146 alcoholic beverages, especially authentic and local products, at 147 the Event, without a buyout fee; 148 149 e. The Promoter shall provide for an allotment of discounted 150 tickets to be made available for the Event for City residents; 151 152 f. HRS shall extend the Jazz in the Gardens agreement entered 153 into by and between the City and HRS by a period of ten (10) 154 years to be coterminous with Promoter’s agreement to host the 155 Event on substantially similar terms. Prior to executing the 4 156 Memorandum of Understanding, the parties will negotiate in 157 good faith with respect to sponsorships, vendors, parking and 158 other terms related to Jazz in the Gardens; and 159 160 g. Said MOU shall continue in effect for so long as Promoter and 161 HRS continue to host Formula 1 racing at the Stadium. 162 163

164 165 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY

166 OF MIAMI GARDENS, FLORIDA AS FOLLOWS:

167 Section 1: ADOPTION OF REPRESENTATIONS: The foregoing Whereas

168 paragraphs are hereby ratified and confirmed as being true, and the same are hereby

169 made a specific part of this Resolution.

170 Section 2: AUTHORIZATION: The City Council of the City of Miami Gardens

171 hereby authorizes the City Manager to (a) execute an MOU with Hard Rock Stadium

172 and South Florida Motorsports, LLC, relating to certain conditions applicable to

173 upcoming Formula 1 events at Hard Rock Stadium in accordance this Resolution; and

174 (b) immediately provide for the City’s cooperation with, and support of, HRS and the

175 Promoter in connection with the preparation for, and execution of, the Event, including

176 expeditious issuance of all necessary permits, consents and other approvals deemed

177 necessary to effectuate the Event and its related activities in the City beginning with the

178 first Event (currently contemplated to take place in 2022).

179 Section 3: EFFECTIVE DATE: This Resolution shall take effect immediately

180 upon its final passage.

181 PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF MIAMI

182 GARDENS AT ITS REGULAR MEETING HELD ON ______, 2021.

183

5 184 ______185 RODNEY HARRIS, MAYOR 186 187 188 189 ATTEST: 190 191 192 ______193 MARIO BATAILLE, CITY CLERK 194 195 196 PREPARED BY: SONJA KNIGHTON DICKENS, CITY ATTORNEY 197 198 199 SPONSORED BY: MAYOR RODNEY HARRIS 200 201 Moved by: ______202 203 VOTE: ______204 205 Mayor Rodney Harris ____ (Yes) ____ (No) 206 Vice Mayor Reggie Leon ____ (Yes) ____ (No) 207 Councilwoman Shannon Campbell ____ (Yes) ____ (No) 208 Councilwoman Shannan Ighodaro ____ (Yes) ____ (No) 209 Councilwoman Linda Julien ____ (Yes) ____ (No) 210 Councilman Robert Stephens, III ____ (Yes) ____ (No) 211 Councilwoman Katrina Wilson ____ (Yes) ____ (No) 212

6