MARGARITAVILLE AT SEA

Board of County Commissioners · 2026-07-21 · resolution

Resolution approving a Preferential Berthing Rights Agreement between Miami-Dade County and Classica Cruise Operator Ltd. d/b/a Margaritaville at Sea, with an anticipated positive fiscal impact to the County of $23,148,594.00. The agreement grants preferential berthing rights at Cruise Terminal C, with a five-year term commencing upon the first vessel call on January 9, 2027, through April 30, 2031, with two optional five-year renewal terms. The agreement is expected to generate approximately one million passenger movements and at least $23.15 million in guaranteed revenues over the five-year term. The agreement includes a Minimum Annual Guarantee derived from MVAS's commitment to 100% vessel occupancy for each of the confirmed vessel calls (approximately 170 calls), a unitary fee per passenger fee aligned with PortMiami tariff equivalency subject to a 3% annual escalation, and incentives related to parking, marketing, non-peak day calls, and evening calls. The County has reassignment rights for Force Majeure events, construction activities related to the North Bulkhead Rehabilitation Project and Berth 10 Project, and governmental directives. The agreement was adopted by the Board of County Commissioners on 7/21/2026. The Aviation and Seaport Committee forwarded it to the BCC with a favorable recommendation on 6/8/2026. Commissioner Milan Orbis expressed appreciation for the revenue and noted she was glad the County was bringing another cruise line into the port, but wished to proceed with caution and asked whether it was advisable to enter into long-term agreements and grant berthing rights to new cruise lines. Mr. Wong explained the barriers to entry were significant, noted the last major cruise line to begin operating at the seaport was Virgin Voyages, advised negotiations had spanned nearly a year, described the agreement as notable in structure, and confirmed entering into the agreement was advisable and that he had no hesitation regarding the grant of berthing rights. The agreement operates out of Terminal C. The first preferential berthing agreement with a new cruise line partner since the Port's 2019 agreement with Virgin Voyages. In August 2025, the Port and MVAS executed a Confirmation of Berthing Request, confirming an initial deployment of approximately 170 calls. Margaritaville at Sea is operated by Classica Cruise Operator Ltd. in partnership with the Margaritaville hospitality brand founded by Jimmy Buffett, backed by private equity firm Sycamore Partners. Since its launch in 2022, the company has expanded from a single vessel to a three-ship fleet by 2027, including the Margaritaville at Sea Paradise, Islander, and the newly acquired and refurbished Beachcomber, which will homeport in Miami beginning in January 2027. The Seaport Department staff members responsible for monitoring the Agreement are Frederick P. Wong, Jr., Deputy Port Director, Operations, and George Andrews, Assistant Director, Strategy and Economic Development. PortMiami is located within District 5, represented by Commissioner Vicki L. Lopez. The impact of this item is countywide. The agreement was introduced on 5/18/2026. The County Attorney was assigned on 5/19/2026. The Office of Agenda Coordination was assigned on 5/18/2026. The item has 43 pages. The agreement includes a parking incentive based on MVAS's share of embarkations and a marketing incentive tied to achievement of the MAG. MVAS may also receive either an operational incentive for a non-peak day or for evening vessel calls if applicable. The non-peak day and evening-call incentives provide a 50% reduction of applicable port fees for qualifying calls. Only one operational incentive may apply per vessel call, and all incentives are structured so as not to reduce other fees payable to the County. The agreement includes a unique reassignment provision. The term of the Agreement commences upon the first vessel call on January 9, 2027, through April 30, 2031, with two optional five-year renewal terms upon mutual agreement.