83-17429
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RESOLUTIoN NO.
83-17429
A RESOLUTION OF THE CITY COMMISSION OF THE
CITY OF MIAMI BEACH AUTHORIZING THE EXTENSION
FROM JULY 20, 1983 THROUGH SEPTEMBER 21, 1983
OF CERTAIN LIMITATIONS SET FORTH IN THE LEASE
AND AGREEMENT FOR PRIVATE DEVELOPMENT BETWEEN
THE CITY OF MIAMI BEACH AND REYNOLDS
CONSTRUCTION COMPANY AND AUTHORIZING THE MAYOR
AND CITY CLERK TO EXECUTE SAME.
WHEREAS, the City of Miami Beach is desirous of having a
facility such as the proposed Miami Beach Convention Center Hotel
Complex, the adjacent Retail and Off ice Complex, as descr ibed by
the Lease and Agreement for Private Development (hereafter
referred to as the "Agreement"), dated May 12, 1982 between
Reynolds Construction Company and the City of Miami Beach; and
WHEREAS, the developer since the May 12, 1982 Agreement was
executed has been engaged in reviewing studies regarding the
feasibility of the proposed project, establishing working groups
on engineering and financing for the proposed project, and
meeting with potential investors, lenders and operators for the
project; and
WHEREAS the City of' Miami Beach is aware that Reynolds
Construction Company needs additional time to secure the requisite
funds to construct this project; and
WHEREAS, the City Commission has determined that an extension
of the time limitations set forth in the May 12, 1982 Agreement
should be granted to Reynolds Construction Company to effectuate
the performance of the Agreement by securing the necessary
financing to construct this proposed project, which project is in
the best interest of the City of Miami Beach,
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA:
1. That the City of Miami Beach hereby grants extensions
commencing JUly 20, 1983 up to and including September 21, 1983 in
regard to the following time limitations set forth below, which
are contained in the Agreement dated May 12, 1982 between the City
and Reynolds Construction Company; provided, however, that if
Reynolds Construction Company does not secure the funds required
by Section 7.2 of the Agreement and notify the City that it has
secured these funds on or before September 21, 1983, that all
other extensions provided for by this Resolution shall have no
force or effect and shall be deemed null and void.
a. That Reynolds Construction Company is granted until
September 21, 1983 pursuant to Section 7.2 of the
Agreement to inform the City that it has secured
sufficient funds to construct the first complexes;
b. That Reynolds Construction Company is granted no later
than twelve (12) months from September 21, 1983 to
submit all Design Development Plans required by Section
4.3 of the Agreement;
c. That Reynolds Construction Company is granted not more
than one hundred eighty (180) days after the approval
of the City of Design Development plans, pursuant to the
extensions granted by this Resolution, to submit all
contracts or sub-contracts for construction of
improvements for the project as provided for in Section
4.8 of the Agreement;
,.,<<or" OF THE CITY IITTORNEY . 1700 CONVENTION CENTER DRIVE. MIAMI BEliCH. FLORIOII 33139
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d. That Reynolds Construction Company is granted no later
than six (6) months from the approval (s) of the Design
Development Plans referred to in Section 4.8 of the
Agreement to diligently prosecute to completion the
development of the premises through the construction
thereof as set forth in Section 4.10 of the Agreement.
e. That Reynolds Construction Company is granted not later
than thirty (30) days to enter into a management
contract for the hotel as set forth in Section 6.1 of
the Agreement, which thirty (30) days shall commence
after Reynolds Construction Company has performed all
conditions precedent to commencement of construction as
required by Section 4.9 of the Agreement, all of which
condi tions shall be done not later than six (6) months
from approval of the Design Development Plans and any
changes thereto as required by the Agreement.
2. Tha t the City Commi ss ion of the City of Miami Beach
hereby approves of these extensions as set forth herein and
authorizes the Mayor and City Clerk to execute this Resolution
providing for same.
ATTEST:
PASSED and ADOPTED this 20th day of July, 1983.
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CITY CLERK
APPROVED AS TO FORM:
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DATED 7 (?-D{ 83
RESR/jhd
7213B
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OFFICE OF THE CITV ATTORNEV . 1700 CONVENTION CENTER ORIVE . MIAMI BEACH, FLORIOA 33139
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. ll1iMuLDS CONSTRUCTION COMPANY
CI r Y t-l^~'jl)L[j~~ 'JFJ.i;
. 1130 'MADISON AVENUE -- NEW YORII, NEW YORK 10022
CA....... R&YNOCONaT
TEL~PHON.t (212. .29.118701
July 14, 19B3
Mr. Rob W. Parkins
City Manager
City of Miami Beach
1700 Convention Center Drive
Miami Beach, Fla. 33139
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Dear Mr. Parkins:
Re: Miami Beach Convention Center
Hotel Project
Reference is made to the numerous discussions held by me and by Mr. Alan
Berman with the Mayor of Miami Beach, with you, various City officials
regarding subject project.
I think it is clear to everybody involved in the project, as we stated
verballY again and again during our testifying before the City Commission
meeting on June I, 19B3, in our meetings, telephone conversations and by
bringing to Miami Beach groups of bankers, investors and hotel representatives,
how deeply we are involved in this project, how much money and efforts we
have invested in it. I am glad to say now that we have advanced quite a bit
and I hope that our idea of ivesting in Miami Beach is now more acceptable
to our investors and financial institutions than in the beginning.
Nevertheless it is clear that the project of this magnitude needs a
reasonable period of time to be accomplished. As I mentioned before, our
economists and financial advisors are continuously active and elaborating
on the economics of this project as well as our engineers and architects
continue in preparing the proper cost estimate for it. We., therefore, hope
that the coming months will allow us to finalize our negotiations favorably.
I take this opportunity to remind you of the importance that the expansion
of the Convention Center has for this project.
The ideas were clearly laid down by Laventhol & Horwath and their studies,
and were brought to us again and again by every banking or investing group,
hotel chain, etc. We were therefore pleased very much when the City undertook
proper steps that brings this project closer to implementation, also in this
matter I would like to repeat our position that we will be more than glad to
cooperate with the City in negotiating the expansion and renovation of the
Convention Center.
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AGENDA R-7-() -I
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DATE 7- co- gJ
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. REYNOLDS CONSTRUCTION COMPANY
Mr. Rob W.Parkins
PAGE 2
July 14, 1983
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Our engineers are reviewing the documents for the above and we hope that
we can be in a position to offer the City a deal for the expansion at
the best possible price and under the best possible conditions.
Should we be awarded the Convention Center expansion, we will be willing
to look into the matter of obtaining interim financing for the City
required for the preparation of the site for the hotel project according
to the existing City's obligations.
As a matter of fact we see both projects, namely expansion of the
Convention Center and our proposal for the construction of The Convention
Center Hotel as one big unit which will revitalize and bring new life
into Miami Beach. Should we be awarded the expansion project and due to
the time factor, we will go ahead with both projects together after the
proper construction contract for the Convention Center expansion will be
finalized between the City and us. We of course will go ahead with The
Convention Center Hotel Project as specified in our contract with the
City dated May 12, 1982 even if a better offer than ours will be accepted
by the City.
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I am confident that the City understood and accepted our objection to the
way RFP 72-83 was published, namely mentioning the additional hotel to be
built, a fact that could undermine all our efforts and the credibility
with banking and investors groups and hotel operators, to whom our Project
is introduced as The Flagship Hotel for the Convention Center. But we are
confident that by the time the expansion of the Convention Center will
start we will be able to start with our Project.
We, therefore, understood that the City will not proceed with
a project . of a second hotel during the requested extension period,
will not pursue the construction of a second hotel in the area of the
Convention Center in case we start with out Project.
and
Based on the above we kindly request to extend the deadline of notifying
the City that we have secured the financing necessary to construct our
proposed Convention Center Hotel Project contained in our "Lease and
Agreement for Private Development" dated May 12, 1982, until Dec 31, 1983.
Sincerely yours,
REYNOLDS CONSTRUC ION COMPANY
cc: The Honorable
Mayor Norman Ci ment
President
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