99-23373 RESO
RESOLUTION NO.
99-23373
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, APPROVING THE OVERALL PLAN
FOR THE RENOVATION OF THE CITY OF MIAMI BEACH'S GOLF
COURSES AND CLUBHOUSES AT BAYSHORE AND NORMANDY
SHORES; FURTHER AUTHORIZING THE ADMINISTRATION AND
AUTHORIZING ARTHUR HILLS AND REG TO DEVELOP A PLAN TO
PROVIDE THE NECESSARY FINANCING TO IMPLEMENT THE
PROJECT.
WHEREAS, on October 8, 1997, the firm of Arthur Hills and Associates, Golf Course
Architects, was selected to prepare the schematic phase for the renovations and/or restoration ofthe
City's Golf Courses; and
WHEREAS, on June 17, 1998, the Mayor and City Commission selected the Arthur Hills
Plan A for Bayshore Golf Course, but leaving the present Landscape Division in place, instead of
a new Golf Learning Facility, as proposed in Plan A; and
WHEREAS, on November 4, 1998, the Mayor and City Commission authorized the
execution of an Agreement for the development of an analysis of the City of Miami Beach public
golf course system with the firm of Economic Research Associates (ERA), which would evaluate
the future development alternatives and market and financial potential; and
WHEREAS, on January 6, 1999, the Mayor and City Commission authorized the execution
of an Agreement with the firm of REG Architects, Inc., for architectural/engineering services for
the redesign and/or renovation of the Bayshore/Par 3 and Normandy Shores clubhouses and related
facilities; and
WHEREAS, on July 21, 1999, the Finance and Citywide Projects Committee indicated that
an upscale Bayshore Golf Course could be built if there were sufficient commitment from the hotels
in the area; and
WHEREAS, accordingly, the City has obtained Letters oflntent from 19% ofthe hotel room
stock in the city, totaling 20,780 rounds of golf at Bayshore Golf Course when renovated.
NOW, THEREFORE BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission of the City of Miami Beach, Florida, approve the overall Plan for the renovation of the
City of Miami Beach's Golf Courses and clubhouses at Bayshore and Normandy Shores, further
authorizing the Administration and authorizing Arthur Hills and REG to develop a plan to provide
the necessary financing to implement the project.
PASSED AND ADOPTED THIS 20th DA~$ Octoher
MA~R
, 1999.
~:( rCU~
CITY CLERK
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F:\CMGR\$ALL \COMMEMO.99\GOLFREN.RES
APPROVED p.s TO
FOR}A & LANGUAGE
& fOR EXECUTION
di'JJl~
L . ney
I ufJ.LjtJj
CITY OF MIAMI BEACH
GOLF COURSE AND CLUBHOUSE PROJECT
SUMMARY OF COSTS
AMENDED
PLAN A PLAN A-I PLAN B PLAN A
Bayshore Golf Course - Plan A $3,280,786
(with Landscape Diy. and Stash site)
Bayshore Golf Course - Plan A-I $3,280,786
(without Landscape Diy. and with
Stash site)
Bayshore Golf Course - Amended Plan A $3,280,786
(without Landscape and Stash Sites)
Bayshore Golf Course - Plan B $3,388,498
(without Landscape Div. and Stash
site)
Bayshore Clubhouse 2,323,253 2,323,253 2,323,253 2,323,253
Normandy Golf Course - Plan A 3,230,888 3,230,888 3,231,316 3,230,888
Normandy Clubhouse 1,465,517 1,465,517 1,465,517 1,465,517
Par 3 ($53,661 per hole) 482,948 482,948 482,948 482,948
Additional Golf Course expenses
Bayshore Golf Leaming Facility 540,000 540,000 540,000
Bayshore Tennis Court demolition 10,000 10,000 10,000 10,000
Grow-in period 535,000 535,000 535,000 535,000
Maintenance Yard 794.880 794.880 794.880 794.880
Subtotal $1.339.880 $1.879.880 $1.879.880 $1.879.880
Total Golf Course & Clubhouse Expense
Bayshore Plan A $12.123.272*
Bayshore Plan A (1)
Cost of new Landscape Diy. Bldg.
Total Golf Course & Clubhouse Expense - Plan A(I)
$12.663272*
$ 1.000.000
$13 .663 .272
$1.000.000
Bayshore Plan B
Cost of new Landscape Diy. Bldg. & New Stash site
Total Bayshore Plan B
$12,771,412*
$ 1.500.000
$14.271.412
Total Golf Course and Club House - Amended Plan A
$13.663.272*
*This does not include the cost of the Golf Courses environmental remediation.
F:\CMGR\$ALL\LISA\GOLFCOUR PRO
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ATTACHMENT A
CITY OF MIAMI BEACH
GOLF COURSE AND CLUBHOUSE PROJECT
SUMMARY OF COSTS
PLAN A
Bayshore Golf Course - Plan A
(with Landscape Div. and Stash site)
$3,280,786
Bayshore Additional Amenities
1,738,500
Bayshore Clubhouse
2,323,253
Normandy Golf Course - Plan A
3,230,888
Normandy Clubhouse
750,000
Par 3 ($53,661 per hole)
Additional Golf Course expenses
Bayshore Tennis Court demolition
Grow-in period
Maintenance Yard
10,000
535,000
794.880
Total Golf Course & Clubhouse Expense
Bayshore Plan A
$12.663.307*
*Environmental remediation costs are projected to cost between $700,000 and $3,000,000 for
Bayshore Golf Course and Normandy Golf Course. (See Attachment F). The funding for the
remediation was originally in the General Obligation Bonds included at $1,030,000. The Florida
Department of Environmental Protection and the Miami-Dade County Department of Environmental
Resources Management are currently reviewing the City's documents related to the contamination
and will complete their review of the assessment documents in approximately three months. The
environmental remediation will be mandated even if the Courses are not renovated.
F:\CMGR\$ALL\LISA \GOLFCOUR SES\A TTACHB GOL
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ATTACHMENT B
CITY OF MIAMI BEACH
~.
1700 Convention Center Drive, Miami Beach, Florida 33139
http:\\ci.miami-beach.f1.us
OffIce of the City Manager
Telephone (305) 673-7010
Facsimile (305) 673-7782
September 28, 1999
Bayshore Golf Club
REVISED HOTELS' LETTER OF INTENT REGARDING THE ASSURED ACCESS TO
GOLF ROUNDS ON THE BAYSHORE GOLF COURSE AFTER RENOVATIONS HAVE
BEEN COMPLETED
To Whom It May Concern:
The Hotel (Hotel) hereby confirms its interest in obtaining assured
access to number golf rounds at the Bayshore Golf Club at the rates per round reflected in Exhibit
"A" after it has been renovated, as proposed in the design recommendations of Arthur Hills Golf
Course Architect. Representatives of the Hotel and the City of Miami Beach (City) have engaged
in preliminary discussions regarding this matter and, on the basis of such discussions, they will
continue negotiations on and subject to the terms and conditions outlined below. Hotel further
confirms, assuming satisfactory progress toward a consensus on all business matters, its willingness
and intent to enter into an agreement by December 31, +999 2000.
I. General Terms and Conditions. Attached to this letter as Exhibit B and made a part hereof
for all purposes is an outline of the general terms and conditions that the parties expect to
incorporate in the Bayshore Golf Course Access Agreement (Agreement).
2. Further Negotiation and Definitive Agreement. Further negotiations between City and
Hotel will be required to reach a more definitive written agreement for the proposed
Agreement. The definitive Agreement will set forth in detail the terms, provisions,
covenants, representations and conditions for the transaction outlined in general terms in this
Letter of Intent.
3. Expenses. City and Hotel shall each pay their own costs and expenses in connection with
this expression of interest and the transactions contemplated herein, including, but not
limited to, the costs of their respective legal counsel, and neither City nor Hotel will have any
obligation with respect to costs and expenses incurred by the other in connection herewith.
In the event that counsel for City, the City's bond advisor, or counsel for Hotel shall
determine that different forms of structure of the transaction described herein will more
effectively carry forward such transaction, the structure of the transaction and agreements
relating thereto may be revised to reflect such other forms.
.
-
ATTACHMENT C
4. Legal Effect. Notwithstanding anything to the contrary contained herein, City and Hotel
understand and agree that this letter constitutes only an expression of intent and shall have
no legal or binding effect on the parties. Further, the proposed agreement is expressly subject
to the condition that the parties execute a written definitive contract acceptable to each of the
parties, in its sole discretion, after review and approval of their respective legal counsel,
accountants and other advisors, and their governing bodies or Board of Directors.
.5.... The number of rounds anticipated to be played at Bayshore Golf Course by hotel guests are
as follows:
- Peak Season (12/20 - 4/15) =
@ $115 per round (anticipated)
Number of rounds
- Shoulder Season (4/16 -6/15 & 10/1 -12/19) =
@ $80 - $70 per round (anticipated)
Number of rounds
- Summer Season (6/16 - 9/30) =
@ $55 - $42 per round (anticipated)
Number of rounds
The foregoing correctly sets forth the terms of the understanding.
Very truly yours,
By:
Name:
Title:
Agreed to and accepted this
day of , 1999.
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Exhibit B
Representative General Business Considerations for a Golf Course Access Agreement Between a
Participating Tier One Hotel and the City of Miami Beach
Overview: The following business points have been prepared to provide an overall description
of the general terms and conditions of a proposed Agreement between Hotel and
the City on behalf of its Bayshore Golf Course. The actual contract between the parties will contain.
in addition to the usual and customary legal provisions associated with any contract and a recital of
the economic and operational deal points, supporting exhibits and schedules which describe policies.
procedures and methodologies for tabulating and tracking actual use by the participants
Purpose: Development of an enforceable Agreement which provides assured access to golf tee
times on behalf of participating Hotel at the Bayshore Go If Club. In exchange for assured tee time
allocations, advance reservation privileges and priority access, the participating hotel agrees to enter
into long term "take or pav" golf tee time agreement at rates acceptable to the issuer of revenue
bonds and to the Hotel as reflected in Attachment 1. The participating Hotel must be deemed to be
credit worthy by the debt issuer.
On the basis of such agreement the City \vilI undertake the design and reconstruction
of the City's Bayshore and Normandy Golf Courses and Par 3 Golf Course utilizing revenue bonds
to fund the necessary improvements and complete the course and clubhouse renovations on a timely
basis.
Definitions:
Priority One, Tier One Hotel
Hotel with 500 plus rooms located in Miami Beach
Priority Two, Tier One Hotel
Hotel with 500 plus rooms located in Miami
Pooling Agreement Hotels
Miami Beach hotels (at least 50 participating properties)
which have executed five year agreements with golf tee time
pooling entity under which agreement each participating hotel
agrees to guaranty up to 48 rourlds in peak season
Visitor Bureau pool
Entity representing visitors and convention bureau which
agrees to guaranty up to 48 Rounds in high season (for benefit
of secondhome renters and owners)
Parties:
The City of Miami Beach
Tier One Participating Hotels. Pooling Entity or Visitor
Bureau
Term:
Five years
Rate:
Rate Card (to be developed)
Advanced Tee Time Reservation:
Simultaneous with hotel room booking up to two years prior
to date of booking Privileges
Minimum Annual Rounds by
Season:
December through April
16 rounds per day =
4 tee times daily
2,400 rounds (16@150 days)
May-June, October-November
16 rounds per day =
1 tee time daily
480 rounds (4@120 days)
July-September
2 rounds per day =
I tee tie daily
480 rounds ( 4@90 days)
Note: Assume 8-minute tee time intervals beginning at 8:00 a.m. through 2:00 p.m. This provides
7+tee times an hour over six hours or 42+tee times (168 rounds per day).
Tee Times Scheduling Policies:
Participants will get fixed tee times distributed throughout the day.
Participants may utilize released tee times available to outside players.
Hotel can release tee times back to golf course if done with nine days notice and will not be charged
if a replacement player is booked into the available slot. If the slot is not filled the Hotel remains
accountable for the round at "Settlement Time" at year end.
If Hotel does not confirm tee time within 48 hours of actual tee time the operator may book the tee
time to any player. The Hotel will not be released from obligation to fund round at Settlement Time
if Hotel total annual round count by category is below minimum requirement.
Rain days may not be carried over and applied to future dates. Rain days will only be charged at
Settlement Time if the actual number of tee times utilized for the year is below the total required
annual minimum.
Local Resident access to Tee Times will be limited to one round per hour after noon during peak
season.
2
During shoulder and low seasons local residents shall have access throughout the day and resident
discount rates will apply.
Treaty Agreements:
Number of Treaty Agreements 10
Total Number of Tier One hotels: 8 (26,880 rounds)
Total number of hotel pooling agreements 1 (2400)
Total number of Visitor Bureau agreements 1 (48)
F \CMGR\$ALL \LISA \GOLFCOUR SES\EXH I LOT
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CITY OF MIAMI BEACH
1100 Convention center Drlve. Miami Beach. Florida 33139
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OffIce of the CIty Manager
Talephon ~ (305) 67S-7010
F.acilmll e (305) 673-7782
September 28, 1999
Bayshorc Golf Club
FEYISEV HOTELS' LETTER OF INTENT REGARDING THE ASSURED ACCESS TO
GOIJF ROUNDS ON THE BA YSHORE GOLF COURSE AFTER RENOV A T iONS HAVE
BEEN COMPLETED
To Whom It May COl1cem:
The Wyndham Miami Beac.h Hotel (Hotel) hereby connrn1s its interest in obtaining liSsured
access to n.umber golf rounds at the Bayshore Golf Club at the rates per round reflel ;led in Exllibit.
"N' after it has been renovated~ as proposed. in the design recol1.1mendations of A11hur Hills Golf
Course Architect. Representatives orthe Hotel and the City of Miami Beach (City) have engaged
in preliminary discussions regarding this matter and, on the basis of such discussions, they will
continue negotiations on and ~ubject to the ten11S and conditions outlined below. Hotel:fi.ll:ther
confirms, ass~llning satisfactOlY progress toward a consensus on all business matters, its willingn.ess
and intent to enter into an agreement by December 31 , +999 2.QQ.Q.
1. General Te"nls and Conditions. Attached to this letter as Exhibit Band ma:ie a part hereof
for all ptU-poses is an outline of the general tenns and conditjons that the p ~rties expect to
incorporate in the Bayshore Golf Course Access Agreement (Agreenlcnt)_
2- Further Negotiation and Definitive Agreement. Further negotiations between City and
Botel will be required to reach a more definitive Wlltten. agreement fer the proposed
Agreement. The definitive Agreemen.t will ::.et forlh. in detail the tel~ns, provisions,
covenants, representations and conditions for the transaction outlined in gencral tenns ll.l th;~
Letter of Intent.
3. Expenses. City and Hotel shall each pay their own costs and expenses in ,;onncction with
this expression of interest and the transactions contemplated herein, including, but not
limited to, the costs of thelf respective legal counsel, and neither City nor Ho eel will have any
obligation with )'e~pect to costs and expenses incurred by the other in conn~clion J-.erewith.
In t.he event that counsel for City, the City's bond advisor, 01' counsel for Hotel shaU
detel1uine that different fonns of stmcl'l_lIe of the transaction described I erein willmore
effectively carry forward such transaction, the structure of the transaction and agreelllCnts
relating thereto may be revised to reflect such other fomls.
-
ATTACHMENT D
-
4. Legal Effect. Notwithstanding anything to the contrary contained herein, eit'f and Hotel
understand and agree that this letter consti.tntes only an eX}Jres$ion ofixl.tent allll shallllave
no legal or binding effect on the parties. FU11her, the proposed agreement is expr~'Ssly subject
to the condition that the palties execute a vvritten definitiv€ contract acceptable te' each o'fthe
parties, in its sole discretion, after review and approval of their resp~ctive legal counsel,
accountants and other advisors, and their governing bodies or Board 0 f Direct! trs.
.5... The number of rounds anticipated to be played at Bayshore Golf Course hy hOld guest:Lare
as follow~;
- Peak Season (12/20 - 4/15):::;
@. $115 per round (anticipated)
3~~O
Number ofrounds
- Sholllder Season (4/16 -6/15 & 10/1 -12/19) ""
(~ $.80 - $70 per round (anticipated)
/ .::- ($JO
Number of rounds
- Summe,' Sea.son (6/16 - 9/30);;;
@ $55 - $42 per round (anticipated)
/(J(){)
Number of rounds
The foregoing correctly sets forth tile telms of the understanding.
TcrfcJ!.. 1-, 000
/l-ov"cls .
Very truly yours,
p(t .
fi:znr:.gm~
By:
Name:
Title:
Ron Droegmyer
Gent?-1';"al J:IIanager
Agreed to and accepted this
29th day of Sept. ,1999.
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rfJ~~111 H25 COLLIN; AVENve. 1'1,,>1, BrAell. hOOlOA J)1~U T'L: 10S 531.000e ~.x: J05 &7~-SSSS 199. EoeN ROt; .~."ro<r.,ort.<c,"
VIA FAX - 305-673-7782
October 4, 1999
Ms. Mayra Buttacavoli
Assistant City Manager
City of Miami Beach
1700 Convention Center Drive
Miami Beach, FI. 33140
Dear Mayra:
It was a pleasure meeting with you on Friday to discuss the importance of the
golf course for Miami Beach.
In response to your request, following is our projection of golf room nigr ts for our
hotel based on the current market trend and ongoing plans to repo sition the
hotel. We anticipate that with the availability of an upscale campe :itive golf
course for the Miami Beach area, we could easily target the high end :;orpomte
convention market segment, which in turn would yield 5,000 golf rounds the first
year, 6000 the second year, 7,000 the third & fourth year and would .lltimat'3ly
peak at appx. 10,000 rounds in the fifth year.
Undoubtedly, this golf course is very important to this community and is vmy
much needed to we compete against the Diplomat Hotel in Hollywood, who ras
200,000 sq. ft. of banquet space and will absorb and attract a large corporate' &
convention market segment.
As I explainedf our corporate policy refrains us from signing an a~lreement,
howeverf we can certainly assure you that our commitment to this venture is as
paramount to us as it is to Miami Beach.
Sincerely,
G-L
Tim~M. Nardi, CHA
General Manager
TMN/ppl
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1700 Convention Center Drive, Miami Beach, Florida 33139
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CITY OF MIAMI BEACH
Office of the City Manager
990Cl- ~ 3.42.
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~i i , OffiCE
Telephone (305) 673.7010
Facsimile (305) 673-7782
September 28, 1999
Bayshore Golf Club
REVISED HOTELS' LETTER OF INTENT REGARDING THE ASSURED ACCESS TO
GOLF ROUNDS ON THE BA YSHORE GOLF COURSE AFTER RENOVATIONS HAVE
BEEN COMPLETED
To Whom It May Concern:
The Fontainebleau Hilton Hotel (Hotel) hereby confirms its interest in obtaining assured
access to number golf rounds at the Bayshore Golf Club at the rates per round reflected in Exhibit
"A" after it has been renovated, as proposed in the design recommendations of Arthur Hills Golf
Course Architect. Representatives of the Hotel and the City of Miami Beach (City) have engaged
in preliminary discussions regarding this matter and, on the basis of such discussions, they will
continue negotiations on and subject to the terms and conditions outlined below. Hotel further
confirms, assuming satisfactory progress toward a consensus on all business matters, its willingness
and intent to enter into an agreement by December 31, +999 2000.
1. General Terms and Conditions. Attached to this letter as Exhibit B and made a part hereof
for all purposes is an outline of the general terms and conditions that the parties expect to
incorporate in the Bayshore Golf Course Access Agreement (Agreement).
2. Further Negotiation and Definitive Agreement. Further negotiations between City and
Hotel will be required to reach a more definitive written agreement for the proposed
Agreement. The definitive Agreement will set forth in detail the terms, provisions,
covenants, representations and conditions for the transaction outlined in general terms in this
Letter of Intent.
3. Expenses. City and Hotel shall each pay their own costs and expenses in connection with
this expression of interest and the transactions contemplated herein. including, but not
limited to, the costs of their respective legal counsel. and neither City nor Hotel will have any
obligation with respect to costs and expenses incurred by the other in connection herewith.
In the event that counsel for City, the City's bond advisor, or counsel for Hotel shall
determine that different forms of structure of the transaction described herein will more
effectively carry forward such transaction, the structure of the transaction and agreements
relating thereto may be revised to reflect such other forms.
4.
Legal Effect. Notwithstanding anything to the contrary contained herein, City and Hotel
understand and agree that this letter constitutes only an expression of intent and shall have
no legal or binding effect on the parties. Further, the proposed agreement is expressly subject
to the condition that the parties execute a written definitive contract acceptable to each of the
parties, in its sole discretion, after review and approval of their respective legal counsel,
accountants and other advisors, and their governing bodies or Board of Directors.
:}
.i. The number of rounds anticipated to be played at Bayshore Golf Course by hotel guests are
as follows:
- Peak Season (12/20 - 4/15) =
@ $115 per round (anticipated)
1800
Number of rounds
- Sh.~uldcr S~aS\)n (~/16 -t/15 & lOll -12/19):-
1000
@ $80 - $70 per round (anticipated)
Number of rounds
- Summer Season (6/16 - 9/30) =
@ $55 - $42 per round (anticipated)
~
Number of rounds
The foregoing correctly sets forth the terms of the understanding.
Very truly yours,
By:
Name:
Title:
Leo Salam
Managing Director
A greed to and accepted this
29th day of Sept. , 1999.
MDB:lcd
I" \CMGR\$ALL\L1SA \GOLFCOUR SES\L TRINTEN GOF
CITY OF MIAMI BEACH
1700 Convention Center Drive. Miami Beach. Florida 33139
http:\\ci miami-beach.f1.us
OffIce of the City Manager
Telephone (305) 673-7010
Facsimile (305) 673-7782
September 28, 1999
Bayshore Golf Club
REVISED HOTELS' LETTER OF INTENT REGARDING THE ASSURED ACCESS TO
GOLF ROUNDS ON THE BA YSHORE GOLF COURSE AFTER RENOVATIONS HAVE
BEEN COMPLETED
To Whom It May Concern:
The bEl.. A '" 0 Hotel (Hotel) hereby confirms its interest in obtaining assured
access to number golf rounds at the Bayshore Golf Club at the rates per round reflected in Exhibit
"A" after it has been renovated, as proposed in the design recommendations of Arthur Hills Golf
Course Architect. Representatives of the Hotel and the City of Miami Beach (City) have engaged
in preliminary discussions regarding this matter and, on the basis of such discussions, they will
continue negotiations on and subject to the terms and conditions outlined below. Hotel further
confirms, assuming satisfactory progress toward a consensus on all business matters, its willingness
and intent to enter into an agreement by December 31, +999 2Q.QQ.
1. General Terms and Conditions. Attached to this letter as Exhibit B and made a part hereof
for all purposes is an outline of the general terms and conditions that the parties expect to
incorporate in the Bayshore Golf Course Access Agreement (Agreement).
2. Further Negotiation and Definitive Agreement. Further negotiations between City and
Hotel will be required to reach a more definitive written agreement for the proposed
Agreement. The definitive Agreement will set forth in detail the terms, provisions,
covenants, representations and conditions for the transaction outlined in general terms in this
Letter of Intent.
3. Expenses. City and Hotel shall each pay their own costs and expenses in connection with
this expression of interest and the transactions contemplated herein, including, but not
limited to, the costs of their respective legal counsel, and neither City nor Hotel will have any
obligation with respect to costs and expenses incurred by the other in connection herewith.
In the event that counsel for City, the City's bond advisor, or counsel for Hotel shall
determine that different forms of structure of the transaction described herein will more
effectively carry forward such transaction, the structure of the transaction and agreements
relating thereto may be revised to reflect such other forms.
4. Legal Effect. Notwithstanding anything to the contrary contained herein, City and Hotel
understand and agree that this letter constitutes only an expression of intent and shall have
no legal or binding effect on the parties. Further, the proposed agreement is expressly subject
to the condition that the parties execute a written definitive contract acceptable to each of the
parties, in its sole discretion, after review and approval of their respective legal counsel,
accountants and other advisors, and their governing bodies or Board of Directors.
j", The number of rounds anticipated to be played at Bayshore Golf Course by hotel guests are
as follows:
- Peak Season (12/20 - 4/15) =
@ $115 per round (anticipated)
3:5-0
Number of rounds
- Shoulder Season (4/16 -6/15 & 10/1 -12/19) =
@ $80 - $70 per round (anticipated)
6150
Number of rounds
- Summer Season (6/16 - 9/30) =
@ $55 - $42 per round (anticipated)
/00
Number of rounds
700 R...o(,)/)d'Js
;? ~- 'f I!-
jJ~ /Y)/cha~.1 ~/..;A');
) e-la--YJo ;.Jofe.i.
The foregoing correctly sets forth the terms of the understanding.
Very truly yours,
~/~~
6/1'7
Agreed to and accepted this
~,\"Qj day of Sat.,... ,1999.
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THE NATIONAL HOTEL
MIAMI BEACH
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Mayra Diaz Buttacavoli .
Assistant City Manager
City Of Miami Beach
1700 Convention Center Drive
Miami Beach FL 33139
September 29, 1999
Dear Mayra,
Thank you for coming by the hotel today with Michael Aller, to discuss the letter of
intent regarding the assured access to golf rounds at Bayshore Golf Course. The plans you have
presented, as well as the involvement of Arthur Hills & Associates, are both very exciting, and
good news for us on both a civic and tourism level.
Golf is certainly a draw for a certain tourist clientele visiting this area, and I have no
doubts that the project will be a financial success. Speaking for the clientele of the National,
however, I think our use of the facility will be somewhat limited. According to our best
estimates, we receive perhaps 1-2 requests for golf course referrals per week during high season,
and only about as many per month in the low season. It would certainly be a boom to our local
reputation to be able to refer golfers to a 1st class local venue, as Bayshore will surely be.
Mayra, as I told you in our meeting this morning, I am personally and professionally
committed to the long-term improvement of Miami Beach. I appreciate your diligence to this
end, and am ready to help you at whatever level you might need. Please feel free to call me at
any time.
cc Michael Aller
file
1677 COLLINS AVENUE' MIAMI BEACH, FL 33139
TEL 305-532-2311 . FAX 305-534-1426
FOR RESERVATIONS CALL 800-327-8370
WWWNATIONAlHOTEL COM' [-MAIL: SAlES@NAflONALHOTElCOM
RECIPIENT Of 1998 DADE HERITAGE TRUST "flAll OF fAME AWARD"
LISTED IN THE AMERICAN REGISTER or HISTORIC PLACES
Oct-Ol-99 06:25P CGH Miami Beach
305-532 Oa95
P.Ol
(Ulun~~ ~OU~ .uOT!Lt Inc
1"\AIIL1'~\I:~~J:I Ii,;.: jt\(;r; n
FOllr Points HOlellJY SllerJl()rl . BE:~;1 Wl.~::;lf}rll Beach iksorl . Ilowalc1 ,/O!lnson (Jr.r.illlsicle RAsorl . Days Inn Art l.)cco'Convr.milill CAI118r " [ltIY::; Inn UccanslrJp,
Ol'1() hl'r I, 1999
Mrs. Myra Buttacavoli
('it.. lVlilll<l!.!ers Oflke
i 760 C()l1\~nlion Cenler Orne, 4th Floor
Mtallli Beach. Fl 33139
Via hlX' nO')) (l71-77'X"1
Rc Goll' courses in Miami Rem:h
Dear Mrs Rultm:avoli:
It was a plciburC speaking with YOllloday abollllhe fulure golf course project.
}\I this point in time, our company does not promote golfing in Miami Beach due lo
b~tt~l' CI.lUrs~:-; lKyond our eily limits. lTowevl;l', adding another exciting fealure l( our
dty can only enhance and promole J'uture husiness. R~llovating the golf courses v'ill
benefit both tourist and residenls alike, (lIld you haw my assurance tbat OI1t:t: the
renm'atioll has heen completed, our urgalllL.aliol1 will add lhis lealure into our brochures
and collaleralmalerials. FUl1her, Charles Ciroup Hotds may eOllscrvatively comnil ilsel"
to arproximmcJy seVC!l hundred and lilty rollnds per year.
Wr,; lHLISt alsll J...eep in mind that to the north or liS lhl' Diplomal Holel in llollywoild is
being dcv(,:!opl,xl v.itl! a stale-of-the-al'l golf course within walking distance If \v( do not
react applopnately to our compelilion, \-Ve 'vvill pay the prk-c regardless
I ,1111 looking forward to a lavomhle response lm behalf of our COtllllllSsiol1ers, am i r /(,:.111
he of fmther Jssistance, please conlacl me at (105) 512-2266.
Yours tl'lIl),
RCQlOl1dl [)(ecutlve Office 4:J:J:1 COllins Avr.nlJc, fVlillmi flp'ijr.h, Flnmi\l 33140 . Tel 305-G32-22G6 . Fa~ ;lUJ-Jj~.UIl9~
._~-~
ATTACHMENT E
10/04199 16: 32
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141001
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rJi~~111 H25 COLLINS AVENue, M'AM' BrAell, ~LO",OA HI~O T,,: 10553 1-0000 ~AX: 305 67~-SSSS 199 I cOcN ROt; .d,nrQ,r"Qrt.com
VIA FAX - 305-673-7782
October 4, 1999
Ms. Mayra Buttacavoli
Assistant City Manager
City of Miami Beach
1700 Convention Center Drive
Miami Beach, FI. 33140
Dear Mayra:
It was a pleasure meeting with you on Friday to discuss the importance of the
golf course for Miami Beach.
In response to your request, following is our projection of golf room nigrts for our
hotel based on the current market trend and ongoing plans to reposition the
hotel. We anticipate that with the availability of an upscale competitive golf
course for the Miami Beach area, we could easily target the high end ~orpomte
convention market segment, which in turn would yield 5,000 golf rounds the first
year, 6000 the second year, 7,000 the third 8. fourth year and would Jltimatl:lly
peak at appx. 10,000 rounds in the fifth year.
Undoubtedly, this golf course is very important to this community and is vE~ry
much needed to we compete against the Diplomat Hotel in Hollywood, who has
200,000 sq. ft. of banquet space and will absorb and attract a large corporate, &
convention market segment.
As I explained, our corporate policy refrains us from signing an a~lreement,
however, we can certainly assure you that our commitment to this venture is as
paramount to us as it is to Miami Beach.
Sincerely,
Gl:
Tim~ M. Nardi, CHA
General Manager
TMNjppl
~.".,.~ .IHt.-.\~;lr/~'ul
- Dli(;'I'lNATlON
~I..",\ 1I1~"11'1
City of Miami Beach MEMORANDUM
lO
TO:
Ricardo Mendez, Assistant Public Works Director
FROM:
Bruce D. Henderson, Environmental specialist.
September 30, 1999
DATE:
SUBJECT: Update on Bayshore and Normandy Shores Golf Course Environmental Issues.
The Florida Department of Environmental Protection and the Miami-Dade County Department of
Environmental Resources Management are currently reviewing the Contamination Assessment
Report Addendums, the Risk Assessment Reports, and the Remedial Action Plans for the two golf
courses. Both agencies must complete their reviews before they will be in a position to begin
addressing our proposed remedial actions.
As a result of the high levels of arsenic contamination present on our courses, the extent of the
area impacted (450 acres), and stringent Federal, State and Local environmental standards,
remedial actions will defInitely be required at both courses. The scope of those remedial actions,
is yet to be determined and is subject to some flexibility on the part of the regulatory agencies.
Based on a strict interpretation of the existing regulations, the City would be required to undertake
an extensive and expensive remediation of both courses. However, the City believes that such
comprehensive actions would be unwarranted and unjustified. Therefore, we have proposed a
Remedial Action Plan which we believe will effectively protect human health and the environment,
without placing an undue financial burden on the City.
The issue of arsenic contamination beneath golf courses and other "turf grass agricultural areas"
such as parks, cemeteries and sports facilities has become a major issue for the regulatory
agencies. Because of our climate, golf courses must utilize large quantities of agricultural
chemicals to controls weeds. A compound called MSMA (monosodium methylarsonate) has been
the most widely used herbicide in the turf grass maintenance for nearly 100 years. Unfortunately
the compound contains the heavy metal arsenic which accumulates in the soil and does not
breakdown with time. As a result, there are elevated levels of arsenic beneath virtually every golf
course in Florida and the older the course, the higher the arsenic levels. This is known to be true
of all of the courses owned by Miami-Dade County. In order to develop regulatory policy on the
issue, the Florida Department of Environmental Protection (FDEP) formed an Arsenic Task force
comprised of hazardous waste specialists from the FDEP as well as specialists from Miami-Dade,
Broward and Palm Beach County environmental agencies. The Task Force is using the situation
on our courses as their "test case" for the development of their regional policy. The cases
involving other golf courses throughout Florida have been put on "hold" pending the outcome of
their deliberations on our courses.
C:IDA TA61 IBRUCElMEMOSlGOLFUPD9 MMO .
-
r
AT~HMENT F
If the regulatory agencies approve our proposed Remedial Actions, the remediation of the courses
will cost approximately $350,000 for both courses. In a "worst case" scenario (If the most
stringent interpretation is enforced), the remediation of the courses could exceed $3,000,000. It
is unlikely that the DERM will adopt the most stringent approach. However, getting them to
approve our proposed plan without modification will require a good deal of negotiation. Efforts
to obtain a more accurate estimation of the remedial costs from the DERM have been
unsuccessful, because DERM is unwilling to provide additional information before the Task Force
completes its review.
An investigation into possible Federal and State funding options to help defray the remediation
costs was conducted and no funding sources were identified. Although no sources of funding have
been identified, the City will continue to seek funding assistance.
During a meeting with DERM representatives on September 30, 1999, they indicated that it will
take approximately three months for the agencies to conclude their review. Once the assessment
reviews have been completed, the City, in conjunction with Earl Gallop and Metcalf & Eddy will
begin negotiations to obtain approval for the minimum allowable remedial actions.
C: Mayra Diaz-Buttacavoli, Assistant City Manager
Matthew D. Schwartz, Assistant City Manager
Kevin Smith, Director, Parks and Recreation
Julio Grave de Peralta, Public Works Director
C:\DA T A61IBRUCElMEMOSlGOLFUPD9 MMO
Sent by: DAVID LEININGER 9729915450
10/05/99 2:20PM Job 44
I
Pa~e 1/2
Econon,ics Research Associate-;
Hate:
October 5.1999
FROM:
My ra lJiaz~8uthlcav,()li
David Leininger # ..
Miami Beach Hotel Golf Course UtUil..ation C()mmitment~
TO:
SlJB.JECT:
r have had an opportunity to review the responses you have rc:<:eivcd fro 11 :.:elcCI cd
m'co hotels with regard to their level of support fi)r the Bayshon: Golf ('nurse ati cr it ha:;
been renovatcd. Based upon these n:sult~ the li.,llowing conclusions appl.:ar w.mllntl:d'.
I) The a..(~a hn1els who were <lppruachcd dearly untlcrstood the rain; which H1I.'
new would require and the gen.eral terms and condiiiol1S lIndt.'r ~ hit:h
rounds woukl he made available to panicipating hotds:
2) All fiml' ofthe major hotels (as (k~tcrmin(~d by room invl'ntory) ('onf"il'lTll.d
their willingness to provide signifkanl number ofgw.:st round!' t,) th...~
course
;) The lolalnumoor of rounds specified hy the hoh.ds cxc~~(...'(ls 20,000 with II\(:
vast majority in the high season at peak season prices. ERA cstil rlatcd II ~;H
the Loews, Wyndham, F(lllluin~hleall and Eden Roc hOlels coull gCI1l~ratv
33,782 rounds, thereby suggesting that the hotel commitments an::
conservative and will most likely be exceeded if capacity is avai ahle.
4) Oiven the fact that. the City has not Yl;.~t approached the downtown Mim1 j
hotds nor has the City created a rXlOling entity to secure a group nrrom d::,
t'br smaller lodging and rental condominium properties ~)n Miatll i IkadLi\
is clear that a substantial number of additional rounds ofdemallc C:iJ1 he
"~l.:l.lred lhrough s\lh~equenl negotl(jlion which wOl,Ill! exceed lht: aVllilaHc
supply;
5) The tOI,11 e~lima1ed rounds PCI' month in tht~ high season period ,1'\.' ),h{)1)
rounds or 22.400 for the mid-Dccl:mbcr/mid-April high season timj plTi"d.
..
..
ATTACHMENT G
Sent by: DAVID LEININGER 9729915450
10/05/99 2:20PM Job 44
Page 2/2
Given the level of slated inlerest amo1lg Miami Beach hotels llmllhc 01.11- r
demand which is clearly evident in the immediate market area. lh ~rc SC(;;'IIS
to be excellent likeJihom.l that thl.: revenues torecast in thl~ ERA finan(~ial
proforma wilJ be achieved.
6)
The final development program agreed upon by the dly slatf Hnd FiJ1alll:/~
Committee is consistent with I~RA rccottuncndalions which WGrc oflen:l.. !I\
our meeting of July 15-1 () in Miami Hcal:h. The filcililies which would h:"
constmcted, therefore, should be capable of providing a guest cxperil..~nc(
consistenl with the expecttttions ofthc out OftOWll goiter and the hotel
m(jnagcmc.~nt which is booking rounds at the coursc.
The uhility of the;: golf courses owned by the City of Miami Bead, tn generale lh: gross '.\lld
nel revenues projc<.;lCU in the original ERA report has b.:,-~n further COnfiI111Cd hy the aclwtl
discussions which have occurred over the course of the :-1ummcr with IOl:al hotel i. Tht:~
hotels did not express (.:onct,.'fn about the level or pricing or the tolal number of rmmds Lllal
they would need to generate. The li.moamc/ltal strength ol'thc market has ~eJl UllCtlrnerted
hy these efforts.
Ilowewr, iL important to stat(~ that the City of Miami Beach mllst accept ~unSlllrtial
restrictions on local resident play dllrit1.g the shoulder and peak season months it: ()rd~l' 1()f
the golfcollrscs to achieve the projections contained in the report. This is especLtlly IHW 1~1I
the Bayshore course ~U)U to a similar extent dUling high season tilT the Normand v c:oursl'.
Bondholder covenants will undauntedly ohlig;ate the City to such stipulations
EHA hHS not reviewed the proposed bund tlnallcing program and propo::;ed man 19t~l1lt~nl
plan and cannot, th~"retorc, comment on these ~lSp(.'Cts ofthc City's initiaLiw. Th,'
management of linancial risk to the City must be addressed within the hond agn~eJ1ll'nl:.;
ilnd the ma nagement contract with the firm who will ()pl~ratc the go If courses Otl t h~~ <.' if. \ -~;
IlChalf~ Until ~uch time as ERA has had an opportunity to review both agret'lllenl:' and I,llt~
supporting financial projections, ERA is noC in a position to comment ~tb(lut pro ')abk
linancial results of the program.
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
http:\\ci.mlami-beach.fl.us
COMMISSION MEMORANDUM No.1 sq -4 C}
TO:
Mayor Neisen O. Kasdin and
Members of the City emission
,
DATE: October 20,1999
FROM:
Sergio Rodriguez
City Manager
SUBJECT:
A RESOLU ION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, APPROVING THE OVERALL PLAN
FOR THE RENOVATION OF THE CITY OF MIAMI BEACH'S GOLF
COURSES AND CLUBHOUSES AT BAYSHORE AND NORMANDY
SHORES; FURTHER AUTHORIZING THE ADMINISTRATION AND
AUTHORIZING ARTHUR HILLS AND ASSOCIATES AND REG
ARCHITECTS, INC. TO DEVELOP A PLAN TO PROVIDE THE
NECESSARY FINANCING TO IMPLEMENT THE PROJECT.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
BACKGROUND:
On October 8, 1997, the firm Arthur Hills and Associates, Golf Course architects, was selected to
prepare the schematic phase for the renovations and/or restoration of the City's Golf Courses. The
Arthur Hills' report dated June 1998 indicated that the renovation/redesign cost of the City's Golf
Courses was estimated to be between $3.8 million and $5.3 million for Bayshore (depending on the
implementation of Plan A or Plan B), $483,000 for the Par 3 and $3.3 million for Normandy Shores'
Plan A. This estimate was exclusive of the clubhouse construction/improvements costs,
environmental clean-up costs, and relocation of city facilities. See Attachment A.
On June 17, 1998, the City Commission selected Plan A for Bayshore Golf Course leaving the
present Landscape Division in place instead of a new Golf Learning Facility proposed in the Arthur
Hills Plan A.
On November 4, 1998, the City Commission authorized the execution of an agreement for the
development of an analysis of the City of Miami Beach public Golf Course system with the firm of
Economic Research Associates (ERA), which would evaluate the future development alternatives
and market and financial potential.
AGENDA ITEM-B..JL
DATE~
On January 6, 1999, the City Commission authorized the execution of an agreement with the firm
of REG Architects, Inc., for architectural/engineering services for the redesign and/or renovation of
the Bayshore/Par 3 and Normandy Shores clubhouses and related facilities.
On February 25, 1999, the results of the study prepared by ERA were presented and discussed at
the Finance & Citywide Projects Committee meeting. The Committee's report was forwarded to the
City Commission on March 3, 1999.
On April 14, 1999, the City Commission was presented with the Management Agreement for the
operation of the Golf Courses. The City Commission instructed the Administration to prepare an
item for the agenda that clearly delineated options for the relocation of the City's Stash Site,
ParkslLandscape Maintenance yard, and the Public Works pipe storage site, all presently located on
the Bayshore Golf Course.
On July 15, 1999, the Mayor's Golf Course Ad Hoc Committee met with representatives from ERA
and Arthur Hills. The purpose of the meeting was to discuss the possibility of implementing a
different plan than proposed by ERA in the feasibility study. Such plan would include the
renovation of Bayshore, Normandy, Par 3 golf course properties. Specifically, at Bayshore, the
Sanitation Stash Site and the Parks Maintenance Facility would be retained. These two facilities
would be smaller in size than the current operations and would be buffered with proper landscaping
and berming so that it would not be visible to the users of the golf course and the residents in the
neighborhood.
The recommendations ofthe Mayor's Golf Course Ad Hoc Committee were as follows:
1. Bayshore Golf Course should be renovated to a Class A Course and Normandy Golf Course
should be more of a neighborhood course. Implement Plan A layout at Bayshore Golf
Course.
2. Retain the Stash Site in its current location, reduce the amount of area it occupies, and
landscape and berm the perimeter to block the view by golfers and residents.
3. Relocate the Parks Landscape Division to the area adjacent to the Public Works Yard. This
recommendation is based on the concern that management practices throughout the years
will not protect/retain the buffer around the Landscape Division suggested by the
Administration. The Division is in the area next to the last four holes (15-18) of the course
which is the most important part ofthe course and the signature hole (17), and the driveway
for the 100+ pieces of equipment and vehicles would run through two of these holes.
4. Increase the capital investment of Bayshore Golf Course to allow for amenities currently not
budgeted such as water treatment on the 17th hole lake, signage, berming and landscaping
of the Stash Site, additional landscaping and fencing to reduce intrusion and encroachment
from non-players.
5. Review/analyze the projected cost for Normandy Golf Course and reduce to an amount more
comparable to a neighborhood course and increase the projected capital cost of Bayshore to
allow for the additional amenities needed to compensate for the retention of the Stash Site.
ERA concurs that this will allow for a fee schedule which will generate the revenue to cover
the debt service for the project.
6. Pursue the availability of a grant for the Par 3 Golf Course from the United States Golf
Association (USGA) for Junior Training Facility.
On July 21, 1999, the recommendations of the Golf Course Ad Hoc Committee were presented to
the Finance and Citywide Projects Committee including the following recommendations from the
City Administration:
1. Accept recommendations of the Mayor's Golf Course Ad Hoc Committee, except the
Administration wants to retain the option of keeping the Landscape Division at its current
Bayshore Golf Course site, if determined that it is not feasible to relocate it to the area
adjacent to the Public Works Yard. ERA has stated to the Administration that with additional
amenities at Bayshore Golf Course and enhanced landscape and berming of the Stash Site
and the Landscape Division, the projected fee schedule will generate the revenue to cover
the debt service for the project.
2. Increase the capital cost of Bayshore Golf Course to provide for the funding of the additional
amenities and the landscaping and berming of the Stash Site and the Landscape Division.
This funding would be accomplished by:
a) Reassigning the projected capital cost for the Par 3 Golf Course renovation to
Bayshore Golf Course and pursue obtaining funding through grants from USGA or
other sources for a Junior Training Facility. The Par 3 Golf Course will not be
renovated until funding is obtained.- $483,000.
b) Elimination of the Golf Leaming Facility. The Administration, ERA, and Arthur
Hills agree that this amenity will be served by a short game practice area, an
expanded driving range and a new putting green at Bayshore. When the Par 3 is
renovated to a Junior Training Facility, these amenities will be duplicated as well.
- $540,000.
c) Reduction of the projected cost for the renovation of the Normandy Clubhouse from
$1,465,500 to $750,000, a reduction of $715,500. Additionally, it should be noted
that as a result of citizen input there is $750,000 included in the proposed General
Obligation Bond for the Normandy Clubhouse.
Summary of reduction of capital costs to offset the increase in amenities at Bayshore Golf Course:
Par 3
Golf Learning Facility
Normandy Clubhouse
$483,000
$540,000
$715.500
$1,738,500
See Attachment B for the Project Summary of Costs.
The discussion at the Finance and Citywide Projects Committee meeting included the potentially
incompatible uses currently located at Bayshore Golf Course (i.e. Park's Department Landscape
Maintenance Division Yard and the City's "Stash Site") and the impact of these uses on the potential
net revenue stream from a renovated Bayshore Course. It was noted that the net revenue projected
for Bayshore needs to be sufficient to carry the operating, maintenance and debt service costs for
itself and make up the shortfall in all categories of these costs for both the Normandy Shores Course
and the Par 3 Course.
Both the feasibility consultant, David Leininger, ERA, and the golf course architect, Steve Forrest,
Arthur Hills & Associates, made presentations of the issues. After a lengthy discussion, the
recommendations from the consultants were to: 1) add additional funding to the Bayshore Course
project to make it an upscale visitor-oriented course such that it can command fees sufficient to pay
the operating, maintenance and debt services for itself and the shortfalls expected from the other two
courses; 2) cleanup the Stash Site and provide additional buffering by adding appropriate
landscaping; 3) rebuild the Landscape Division Yard using a substantially reduced footprint,
appropriate landscape buffering and minimizing the ingress/egress traffic; and 4) provide an
attractive continuous barrier around the perimeter of Bayshore to reduce or limit intrusion by non-
golf users, road noise and visual interruptions.
The Finance and Citywide Projects Committee indicated that there were three alternatives for this
project: 1) an upscale Bayshore could be built if there is sufficient commitment from the hotels in
the area; 2) lacking a sufficient level of commitment by the hotel community the City should seek
private investors to develop the course based on the City's approved specifications offering them a
long term/management agreement with kick out clauses for specific performance; and, 3) in the
absence of both 1 and 2 to go forward with a Miami Shores "middle of the road" type rehabilitation
of the courses.
Over the Summer, the Administration met with the managers of various hotel properties on Miami
Beach. The hotels represented were the Loews, National, Delano, Fontainebleau-Hilton, Eden Roc,
Wyndham Beach, (Charles Group Hotels:) Days Inn Oceanside, Howard Johnson's Oceanside, Days
Inn Art Deco/Conventions, Best Western Beach Resort and Four Points Sheraton. The purpose of
these meetings was to explain the golf course project and to obtain commitment from the hotels.
After the meetings were held, a letter of interest was forwarded to the hotel managers (Attachment
C), requesting for their input as to the number of rounds that each of their properties would generate
at Bayshore Golf Course once it was renovated. The purpose of these letters of intent was to obtain
a sufficient level of commitment from the hotel community. This would show that the City could
support the 24,000 estimated rounds per year at a regular rate at Bayshore Golf Course. The 24,000
rounds per year projected by ERA will generate the revenue required to cover the debt service for
Bayshore and make up for the short fall at Normandy Shores Golf Course. Letters of interest were
obtained from hotels representing 19% (3606 rooms of 18,542 room stock) of the available hotel
room stock. This group of hotels conservatively estimated a minimum of rounds per year would be
played at Bayshore by their guests which total 20,780 number of rounds per year.
In summary the responses from the hotels were as follows:
Hotels
Wyndam Beach Resort
Eden Roc
F ountainebleau- Hilton
Loews
Charles Group
Delano
National
TOTAL
Rounds of golf
6,000
5,000
3,600
4,680
750
700
~
20,780
Number of rooms
423
349
1206
800
466
208
154
3,606
The Administration's recommendation to the Commission is to approve the issuance of a revenue
bond for the funding of this project and continue with the development of construction documents
for the clubhouses and golf course. This recommendation is based on the following reasons:
1. 19% of the hotel rooms have conservatively estimated the use of 20,780 rounds a year.
(Attachment D). These number of rounds are a conservative estimation from the hotels
because currently there are no golf packages advertised for the leisure traveler nor are the
City's golf courses marketed to the convention industry. In the future, when these golf
courses are renovated, specifically Bayshore, and golf packages are put together both by the
hotels and by the Greater Miami Convention and Visitors Bureau in conjunction with the
booking of conventions, the number of rounds estimated by the hotels at 20,780 will
increase. David Leininger, Senior Vice President of ERA, feels confident with the interest
expressed by the hotels. A letter expressing this was forwarded to the City. (Attachment G).
2. The City Administration has received ample evidence of the interest of the need for a golf
course and support of one. We are confident that once the golf course is renovated that other
hotels not visited during the Summer will refer guests to the Bayshore Golf Course.
Specifically, the hotels that are in downtown Miami which are referred to as "priority two,
tier one hotels" were not contacted, and for those hotels, although located in Miami, the
nearest golf facility would be Bayshore Golf Course. (Attachment C - Letter of Interest).
3. The Administration views the golf courses as an asset not to just Miami Beach residents but
to its guests. In support of this is the renovation of golf courses that have recently taken
place throughout Miami-Dade County, including privately and publicly owned courses, such
as Palmetto, Melreese, Key Biscayne, Miami Shores, Biltmore Country, Club of Miami,
Indian Creek, Riviera, and La Gorce Country Club. ERA has stated that the more golf
courses there are, the more visitors that would be attracted, because the golf traveler will
look for various courses to play during hislher stay.
4. The City needs to look towards the future. The Diplomat Hotel is going through a major
renovation which will include golfing facilities consisting of 45 holes and 1,060 rooms.
Beach hoteliers expressed the need for this City to renovate its courses to keep up with the
renovations at the Diplomat and with County courses, and to secure that future visitors will
be coming to Miami Beach. (Refer to Attachment E letter from Sharone Tzalik, The Charles
Group, dated October 1, 1999 and letter from Timothy M. Nardi, Eden Roc General
Manager, dated October 4, 1999).
CONCLUSION:
Approve the overall plan for the renovation of the Bayshore and Normandy Shores Golf Courses and
Clubhouses; authorize the Administration and Arthur Hills and REG to develop a plan to provide
the necessary financing to implement the project.
SR:J6t?r~
Attachments
F:\CMGR\$ALL\COMMEMO.99\GOLFCOUR.I06