Royal Caribbean Cruises Ltd. wants to expand and renovate its headquarters campus on county land at PortMiami. The company (NYSE: RCL) would spend at least $300 million on the project, according to a county memo. RCL’s amended lease will go before the county’s Tourism and Ports Committee on April 15. It would require County Commission approval at a later date. Officials with RCL couldn’t immediately be reached for comment. The company generates about 30 percent of the cruise traffic at the port and has over 3,000 employees in South Florida.
“The expansion of the RCL campus will increase office space at the Port, ensuring that thousands of workers will continue to report to work in Miami-Dade County for decades to come and improving RCL’s ability to attract and retain workers,” a county agenda memo stated.
PortMiami wants to recapture 4.6 acres leased to Marine Spill Response Corp. (MSRC) and lease 3.15 acres of that to RCL to expand its neighboring campus. The remaining land would be set aside for a possible cruise terminal, with RCL having the first right to negotiate with the county. MSRC would remain at the port with a smaller footprint.
RCL would demolish the 16,000-square-foot office building it occupies at 1040 Caribbean Way. It would build a Terminal K parking garage with about 1,820 spaces plus a new office building, with its size not listed in the agreement. The cruise line would perform major renovations to the buildings it leases at 1050 and 1080 Caribbean Way, which total 138,000 and 150,000 square feet, respectively.
The new RCL campus would include a fitness center, a daycare, a cafeteria, an auditorium and a maritime innovation center for the design development and renovation of cruise vessels.
Under the terms of the deal, RCL would pay the county $311 million in rent over 40 years. If both five-year extension options are exercised by the cruise line, that total would grow to $430 million. In addition, RCL will pay the county about $724,185 during the 10-month construction period for employee parking elsewhere on the port.
RCL agreed to take over maintenance of the leased buildings from the county, saving the county about $14.1 million, according to a county memo.
The company would spend up to $60 million to build the Terminal K parking garage, under the deal. After the garage is completed, RCL would pay the county a “usage fee” of $17 million to $20 million for the spaces it needs in the garage.
The county would agree to pay RCL up to $11.5 million for capital improvements, such as roof and HVAC systems, on the two office buildings that would be renovated. The county would still own those buildings.
Original content South Florida Business Journal