THE PORT EVERGLADES DEPARTMENT RECOMMENDS APPROVAL.
This action supports the Broward County Board of County Commissioners' Value of "Ensuring economic opportunities for all people and businesses in Broward" and Goal to "Increase the economic strength and impact of revenue-generating County enterprises balancing economic, environmental, and community needs."
On April 9, 1980, the Port Everglades Authority, predecessor in interest to the Broward County Board of County Commissioners (Board), entered into a ground lease, as amended, with Primlaks (U.S.A.), Inc., predecessor in interest to Port Everglades Cold Storage, Inc. (Cold Storage), for a period of fifty years to construct and operate a refrigerator/freezer facility on five acres of port land located at 3205 Southeast 19th Avenue at Port Everglades (see Exhibit 1). The current land lease expires on April 30, 2032. On December 31, 2015, Cold Storage merged into Colorado Boxed Beef Co. (Boxed Beef), a Florida corporation. Boxed Beef is requesting the County's consent to assign the land lease to CBBC Real Estate Holdings, Inc. (CBBC), a Delaware corporation (see Exhibit 2). Boxed Beef has also requested the County's consent to encumber its leasehold interest to allow Lessee to execute a leasehold mortgage, and to further assign its interests in the amended lease to a wholly-owned subsidiary of CBBC on or before May 1, 2018.
Boxed Beef, founded in 1975, is a leading distributor of refrigerated and frozen food products-the company was ranked sixth of Florida’s Top Privately-Held Companies in 2013 by the Tampa Bay Business Journal. Boxed Beef supplies its customers with beef, pork, poultry, lamb, veal, seafood, cheese, vegetables, lunch meat, and a variety of dry products. Boxed Beef customers include leading independent and chain retailers, cruise lines, food service distributors, the United States military, amusement parks and other food outlets throughout the United States and internationally, making more than 6,000 deliveries per week. Boxed Beef owns and operates a 78,250 square foot warehouse with five cold chambers for frozen foods on the Port Everglades leasehold.
The property has noncollectable ad valorem taxes on the leasehold improvements for years 1997 through 2000 that will be included in the 2017 Errors and Insolvencies Report to be submitted to the Board by the Records, Taxes and Treasury Division for approval in August 2018.
Port staff has reviewed the assignment application, and has determined that the proposed assignee meets the criteria for assignment and that the proposed assignment is in accordance with past practice. Staff’s due diligence included corresponding with the proposed assignee's representative to clarify requirements, and reviewing the proposed assignee's corporate status, business history/experience, financial documents and creditworthiness. In addition, no safety or environmental violations were found in reviewing the company’s record.
Based on the above, Port staff recommends approval of the Assignment of the Amended Lease to CBBC and consent to the Leasehold Mortgage, with the additional provision that CBBC may assign its interest in the Amended Lease to a wholly-owned subsidiary of CBBC on or before May 18, 2018, with the prior written approval of the Port Everglades Chief Executive/Port Director.
The Consent to Assignment Agreement has been reviewed by the Port Everglades Risk Manager and approved as to form by the Office of the County Attorney.
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