Royal Caribbean's headquarters in Miami approved through 2021

In:
20Jul2011

Royal Caribbean's headquarters will remain in Miami, Florida until at least 2021 under the terms of an agreement approved Tuesday by the Miami-Dade County Commission.

Rent for Royal Caribbean in August 2015 will go to $3.8 million per year for the three building complex.  Miami deputy port director Juan Kuryla characterizes the price as "far below market value" but the deal will keep Royal Caribbean in the area for the foreseeable future.

The new agreement is good for ten years and includes clauses for two five-year renewals.

In addition, the port of Miami will be obligated to make $850,000 worth of repairs to the three buildings over the next couple years.  In addition, both Royal Caribbean and the Port of Miami will make $6 million in improvements to Terminal G. Miami-Dade county will pay $3.5 million and Royal Caribbean will pay $2.5 million.

What does this get Miami?  Royal Caribbean guarantees to bring in at least 325,000 passengers a year at Terminal G, a figure that is lower than years past. However, if Royal Caribbean reaches 375,000 passengers, Royal Caribbean is entitled to a discount on port fees that increases with every additional 50,000 passengers.