MARGARITAVILLE AT SEA

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

The Board of County Commissioners adopted Resolution R-630-26 approving a Preferential Berthing Rights Agreement between Miami-Dade County and Classica Cruise Operator Ltd. d/b/a Margaritaville at Sea (MVAS). The agreement grants MVAS preferential berthing rights at Cruise Terminal C at PortMiami, with a five-year term commencing upon the first vessel call on January 9, 2027, through April 30, 2031, and 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, with a positive fiscal impact to the County of $23,148,594.00. The agreement includes a Minimum Annual Guarantee derived from MVAS's commitment to 100% vessel occupancy for approximately 170 confirmed vessel calls, a unitary fee per passenger fee aligned with PortMiami tariff equivalency subject to a 3% annual escalation, and limited incentives related to parking, marketing, non-peak day calls, and evening calls. The County retains 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 forwarded to the Board of County Commissioners with a favorable recommendation by the Aviation and Seaport Committee on June 8, 2026, and adopted by the Board on July 21, 2026. During the committee meeting, Commissioner Milan Orbis expressed appreciation for the revenue and was glad the County was bringing another cruise line into the port, but wished to proceed with caution given issues facing the port, and asked whether it was advisable to enter into long-term agreements and grant berthing rights to new cruise lines. Mr. Wong explained that barriers to entry in the cruise industry were significant, noted the last major cruise line to begin operating at the seaport was Virgin Voyages, advised that negotiations had spanned nearly a year, and described the agreement as notable in structure, consisting of a five-year term with two five-year renewal options, and stated it was unique among the port's cruise agreements and would operate out of Terminal C. Mr. Wong confirmed that entering into the agreement was advisable and that he had no hesitation regarding the grant of berthing rights to a new cruise line. The agreement marks the first preferential berthing agreement with a new cruise line partner since the Port's 2019 agreement with Virgin Voyages. MVAS is an emerging cruise line backed by private equity firm Sycamore Partners, focusing on short- and mid-length Caribbean itineraries from Florida, and will expand 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. In August 2025, the Port and MVAS executed a Confirmation of Berthing Request, confirming an initial deployment of approximately 170 calls and forming the basis for the proposed long-term Agreement. 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. The impact of this item is countywide as PortMiami is a regional asset and generates employment for residents throughout Miami-Dade County. PortMiami is located within District 5, represented by Commissioner Vicki L. Lopez.