Updated: May 23, 2019 –

The Miami City Commissioners passed RE14, the resolution to appoint legal consultants to assist in the Miami Freedom Park lease negotiations, by a 4-1 vote. The lone ‘no’ was Manolo Reyes, who once again was argumentative and openly dismissive and hostile to the plan. Furthermore, the resolution was amended such that the city attorney will have the final say on which of 3 law firm(s) to work with. (Original article follows)

With Public Mandate secured in last November’s election, Miami Freedom Park moves on to the negotiation stage.

Tuesday, May 21, 2019 – Kenneth Russo

The Miami City Commission will decide on a resolution at the City Commissioners Meeting scheduled for this Thursday, May 23, 2019.

The resolution reads as follows:

A RESOLUTION OF THE MIAMI CITY COMMISSION AUTHORIZING THE RETENTION OF _______________________ AS LEGAL CONSULTANTS TO WORK IN CONSULTATION WITH THE CITY ATTORNEY AND TO PROVIDE SUBJECT MATTER EXPERTISE ON NEGOTIATIONS BETWEEN THE CITY OF MIAMI AND FREEDOM PARK LLC; FURTHER AUTHORIZING THE EXPENDITURE OF FUNDS FOR SAID PURPOSE; ALLOCATING FUNDS FROM THE NON-DEPARTMENTAL LEGAL SERVICES ACCOUNT NO. 00001.980000.531010.0000.00000.

The full May 23, 2019 meeting agenda is available by following this link: City Commission Agenda – May 23, 2019

Resolution Language

With approval by over 60% of Voters on November 6, 2018, the referendum for an amendment to Section 29-B of the Charter of the City of Miami allows the City Commission to negotiate and execute a 99 year lease with Miami Freedom Park, LLC. Approximately 73 acres of the land will be used for the Soccer Stadium project (includes 1,000,000 square feet of office, retail, entertainment and commercial uses, 750 hotel rooms, public soccer fields) and approximately 58 acres for Miami Freedom Park, a new public park. The stadium will become the permanent home of Club Internacional de Fútbol Miami. It is expected to have around 25,000 seats and be ready for the 2022 MLS season.

Two Legal Consultants Under Consideration by City

One of the firms being considered is actually a partnership of two law firms with relevant experience: Fowler, White, Burnett and O’Melveny & Myers, LLP.

Fowler is headquartered in Miami and has additional offices in Fort Lauderdale and West Palm Beach. In a document filed in support of their appointment, Fowler lists the following leasing-related services it can provide to clients:

Contract negotiations

Purchase options

Space construction

Rent escalation clauses

Leasing brokerage agreements and issues

Ground-lease transactions both for new developments and existing buildings

Major sale and leasebacks transactions

Creative tenant-equity leases

Reciprocal lease agreements

Financing arrangements

Property management agreements

O’Melveny’s legal expertise in stadium development issues is well known in the legal field. Alliance partner Irwin Raij, Esq. a partner at O’Melveny, has extensive sporting and stadium experience, which includes advising Phoenix Rising FC in connection with its MLS Expansion bid and related new stadium construction. Additionally, Attorney Raij has advised Palace Entertainment in connection with its bid for an MLS expansion team in Detroit. Charles Baker, Esq. is Co-Chair of O’Melveny’s Sports Industry Practice Group and has been involved in a number of purchases and sales of sports franchises as well as private equity, and venture capital transactions, with a core focus in the sports, media and consumer sectors.

O’Melveny has also represented the developer of Dignity Health Sports Park (f/k/a Stubhub Center) the home stadium of the Los Angeles Galaxy, and served as counsel to Major League Baseball in the negotiations for Marlins Park. The firm also has naming rights experience and has worked on public-private partnerships.

The other law firm being considered by the City is Bryan Cave Leighton Paisner, LLP (“BCP”). This firm boasts 1,400 lawyers in 31 offices across North America (including Miami), Europe, the Middle East and Asia. The firm’s response to the City states that: “We are among the most active law firms in the world in handling significant stadium developments and financing , as well as naming rights and sponsorship transactions. We have the expertise to handle all aspects of these projects, having served as lead counsel in connection with a number of high profile event venue projects across the United States and abroad, including the Staples Center, The 02 Arena (London), The Colosseum at Caesars Palace, T-Mobile Arena (Las Vegas NHL), the Dignity Health Sports Park (f/k/a StubHub Center) and many others.”

With regard to the Dignity Health Sports Park in Carson, California, BCP served as lead counsel to the developer, handling all aspects of the project, from real estate to naming and sponsorship rights. The firm represented the City of Jacksonville in its negotiations with the NFL Jaguars on a lease renegotiation, and has advised on two MLS stadiums: Red Bull Arena in Harrison, NJ and Toyota Park in Bridgeview, IL.

What effect does this have on the Miami Freedom Park project?

I believe this is a positive development. The Commissioners know that the voters have approved this so the idea of Miami Freedom Park and Soccer Village has a public mandate. Thwarting the will of the people after a public vote is clearly not in their best interests. They obviously also have a responsibility to obtain the best result for the City. Having legal counsel with experience in these types of projects should produce a lease that is fair to both the city and Miami Freedom Park, LLC. The balancing act will be to not make the deal so one-sided in the City’s favour that an agreed upon lease becomes economically impractical from Miami Freedom Park’s perspective. But firms like this are highly skilled and their goal will be to succeed, i.e. produce a lease that is mutually acceptable.

It is entirely conceivable that the final lease produced by this process receives unanimous support of the City Commission.

Miami Freedom Park Stadium (photo credit: Inter Miami CF)

Miami Freedom Park and Soccer Village 2018 Promotional Video, courtesy of Inter Miami CF:

https://kennethrusso.com/miami-freedom-park/

© 2020 Russo Law & Soccer