THE PORT EVERGLADES DEPARTMENT AND THE AVIATION DEPARTMENT RECOMMEND APPROVAL.
This action supports the Broward County Board of County Commissioners' ("Board") Value of “Ensuring economic opportunities for all people and businesses in Broward” and the Goal to “Increase the Economic Strength and Impact of Revenue-Generating County Enterprises balancing economic, environmental, and community needs.”
Port Everglades is currently in the process of updating its Master/Vision Plan. Phase 1 of this effort included detailed market projections for the Port's business lines. These projections indicate a continued strong market for the import/export of both perishable food products (fruits and vegetables) and automobiles. As part of the early Phase 2 effort, two new projects have been identified as potential public-private partnership opportunities for these markets.
The Florida East Coast Railway, Inc. ("FECR") approached Port Everglades staff with the concept of developing both a rail-served auto transloading facility and cold storage facility at two different locations on County-owned property within the Port Everglades' Jurisdictional Area (see Exhibit 1). In a letter dated May 29, 2019, the CEO of the FECR requested to enter negotiations with the County concerning the two projects (see Exhibit 2).
The proposed auto transload facility would be located just to the west of the FECR Intermodal Container Transfer Facility ("ICTF") leasehold at Port Everglades approved by the Board on March 12, 2012 (Item No. 46). The auto transloading facility would be developed on County-owned property adjacent to the ICTF. The FECR has identified two potential sites for the facility: Site No. 1 is under existing Florida Power and Light ("FPL") power lines along the western perimeter of the port. Site No. 2 is currently a Port stormwater retention area. The only current access to either parcel from County property is through the FECR ICTF leasehold. The use of the land for an auto transloading facility for staging domestically manufactured vehicles after delivery by rail and prior to export or delivery to dealers in Broward County, or for imported new vehicles prior to loading for rail shipment to other parts of the United States, would open new markets not currently served through Port Everglades.
The proposed cold storage facility would be located on the former Dynegy property at the northeast corner of Old Eller Drive and U.S. 1. The purchase of this 18.55-acre parcel was approved by the Board on August 30, 2005 (Item No. 71), and was jointly funded by the Port Everglades and Aviation Departments. While multiple potential uses of the parcel have been considered since its purchase, none have moved forward. The FECR proposes to construct a 300,000 square foot rail-served temperature-controlled warehouse on the property that would have the ability to transload perishable food products. The FECR would construct a rail spur off of the rail tracks that currently connect the FECR main line to Port Everglades to provide rail access to the property. Perishable food products imported through Port Everglades would be transloaded from shipping containers into refrigerated rail cars for delivery outside of Florida, with repackaging, fumigation, and irradiation facilities available in the warehouse. Similarly, rail cars with perishable food products originating from domestic U.S. markets outside of Florida would be received and transloaded to shipping containers for export to the Latin American markets served by the shipping lines calling at Port Everglades.
Both of these projects have the potential to significantly increase cargo throughput at Port Everglades. The FECR would design, build, finance, operate, and maintain both facilities, and estimates an investment of $50 million for the two projects. Chapter 32 of the Broward County Administrative Code provides authorization for the Port to lease any real property within the Port Jurisdictional Area upon any terms and conditions the County deems proper, and where the County determines that such lease is in its best interest. Staff recommends entering direct negotiations with FECR for both projects.
FECR is a world-class short-line railroad operating between South Florida and Jacksonville. FECR is uniquely positioned for these development projects given their current partnership with the County for the ICTF at Port Everglades as well as the existing FECR partnerships with Class 1 railroads serving the entire United States that connect to the FECR in Jacksonville.
Any lease agreements that may result from the negotiations will be brought back to the Board for approval.
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