Filing # 58030432 E-Filed 06/20/2017 06:26:03 PM

IN THE CIRCUIT COURT OF THE 11TH

JUDICIAL CIRCUIT IN AND FOR MIAMI-
DADE COUNTY, FLORIDA

CIRCUIT CIVIL DIVISION

FLAGSTONE ISLAND GARDENS LLC, a CASE NO. 17-13829 CA 01

Delaware Limited Liability Company, and
FLAGSTONE DEVELOPMENT
CORPORATION, a Delaware Corporation,

Plaintiffs,

Vs. .

CITY OF MIAMI, a Florida municipal

corporation,

Defendant.
____________________________________/

CITY OF MIAMIS MOTION TO COMPEL ARBITRATION

Defendant, City of Miami, by and through undersigned counsel, hereby moves to compel

arbitration of this matter, and states the following in support of its motion.

Fifteen years ago, Miami voters gave Plaintiffs the privilege of a lease allowing them to

develop 24 acres of land and submerged properties for the development of a mega yacht marina,

fish market, hotels with timeshare units, a maritime museum, public gardens, cultural facilities,

restaurants, retail and support facilities, and a minimum guaranteed annual rent of $2 million1. To

date, Plaintiffs have only managed to build a marina with a temporary occupancy permit.

Consequently, at a special City Commission meeting held May 30, 2017, the City Commission

passed a resolution directing the City Manager to issue Plaintiffs a notice of default for failing to

1
Ballot question authorizing 45-year lease of City-owned uplands/submerged land on Watson
Island.
 CASE NO. 17-13829 CA 01

timely commence construction of the retail/parking component of the project. The resolution also

directed the City Manager to default Plaintiffs for failing to comply with Article 6, section 6.1.2

of the Agreement to Enter relating to the closing of construction loans, and failing to comply with

Article 12, section 12.1.2 of the Agreement to Enter relating to Financial Resources and Evaluation

of the Project. On June 7, 2017, the City Manager issued Plaintiffs the notice of default.

[Plaintiffs exhibit E]. In turn, Plaintiffs filed the instant lawsuit in contravention of the arbitration

provisions contained in three controlling documents executed by the parties:

Article XVII: May 30, 2014 Marina Component Amended and Restated Ground
Lease [Plaintiffs exhibit F to complaint]
Article XVII: August 31, 2016 Retail/Parking Component and Restated Ground
Lease [Plaintiffs exhibit B to complaint]
Article XVII: August 2004 Amended and Restated Ground Lease [Exhibit B to
Plaintiffs

The arbitration provision of Exhibit F provides: [a]ny controversy, dispute or breach

arising out of or related to this Amended and Restated Ground Lease (including all monetary

and non-monetary matters) shall be submitted to binding arbitration in accordance with the

provisions of this Article XVII [Exhibit F, section 17.1]. Likewise, Exhibit B contains

arbitration language: [a]ny controversy, dispute, or breach arising out of or related to this

Amended and Restated Ground lease (including all monetary and non-monetary matters) shall

be submitted to binding arbitration in accordance with the provisions of this Article

SVII[Exhibit B, section 17.1]. Finally, the same arbitration language is included in the

Amended and Restated Ground Lease filed as exhibit B to Plaintiffs June 16, 2017 notice of filing.

[June 16, 2017 Notice of Filing, Exhibit B].

The United States Supreme Court and Florida Supreme Court have held that arbitration

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 CASE NO. 17-13829 CA 01

agreements are favored and will be enforced whenever possible. Moses H. Cone Memorial

Hospital vs. Mercury Construction Corp., 103 S.Ct. 927 (1983). A court of this state having

jurisdiction over the controversy and the parties may enforce an agreement to arbitrate. Fla. Stat.

682.181(1). Under Florida law, arbitration is a favored means of dispute resolution and courts

indulge every reasonable presumption to uphold proceedings resulting in an award. Turnberry

Assoc., v. Service Station Aid, Inc., 651 So. 2d 1173 (Fla. 1995). There are three elements for

courts to consider in ruling on a motion to compel arbitration of a given dispute: (1) whether a

valid written agreement to arbitrate exists; (2) whether an arbitrable issue exists; and (3) whether

the right to arbitration was waived. Glenn B. Wright Const. & Dev., Inc. v. Cohara, 87 So. 3d

1276, 1277 (Fla. 4th DCA 2012). Here, there are valid written agreements with arbitrable issues

and the City has not waived its right to arbitrate. On June 20, 2017, the City Attorneys Office

sent Plaintiffs counsel a written demand for arbitration pursuant to the governing documents.

Accordingly, Defendant respectfully requests that the Court Grant its Motion to Compel

Arbitration in this matter.

Respectfully submitted,

By: /s/ Gonzalo R. Dorta___________________

GONZALO R. DORTA
Florida Bar No. 650269

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 CASE NO. 17-13829 CA 01

CERTIFICATE OF SERVICE

I HEREBY CERTIFY that on June 20, 2017, the foregoing was electronically filed with

the Florida Courts E-Filing Portal, which will serve it via electronic mail to counsel of record.

DORTA LAW
334 Minorca Avenue
Coral Gables, Florida 33134
Telephone: 305-441-2299
Telecopier: 305-441-8849
file@dortalaw.com
grd@dortalaw.com

By: /s/ Gonzalo R. Dorta___________________

GONZALO R. DORTA
Florida Bar No. 650269