97-22405 RESO
RESOLUTION NO.
97-22405
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA,
AUTHORIZING THE CITY MANAGER TO EXECUTE A
SECOND AMENDMENT TO THAT CERTAIN LETTER
AGREEMENT, DATED DECEMBER 10, 1996, BETWEEN
THE CITY AND STERLING MIAMI BEACH THEATER
ASSOCIATES, LTD. (STERLING), REGARDING THE
DESIGNATION OF STERLING FOR NEGOTIATION OF ITS
RESPONSE TO REQUEST FOR PROPOSALS NO. 104-95/96,
FOR A MULTIPLEX MOVIE THEATER ON LINCOLN
ROAD (RFP); SAID AMENDMENT EXTENDING THE TIME
PERIOD BY WHICH THE CITY IS REQUIRED TO EITHER
COMMENCE NEGOTIATIONS WITH STERLING, OR
REJECT THE PROPOSALS SUBMITTED BY STERLING IN
RESPONSE TO THE RFP, BY 125 DAYS, THEREBY
EXTENDING THE DEADLINE FROM JUNE 6, 1997 TO
OCTOBER 9,1997.
WHEREAS, on November 6, 1996, the Mayor and City Commission selected the prOpl)S~ I
submitted by Sterling Miami Beach Theater Associates, Ltd. (Sterling), as the sole respondent t,)
City of Miami Beach Request for Proposal No. 104-95/96 for a multiplex movie theater on Limoll
Road (RFP); and
WHEREAS, the Mayor and City Commission's designation of Sterling's proposal fo.~
purposes of negotiation, was subject to certain terms and conditions as specified in that certain Lftte :~
Agreement entered into between the City and Sterling, dated December 10, 1996; and,
WHEREAS, pursuant to the terms and conditions of said Letter Agreement, if the Cit), i] 1
its sole discretion, for any reason or for no reason, decided not to commence negotiations on or prio:~
to February 6, 1997, the City could reject Sterling's proposal and terminate the entire transaclio 1
without any resultant liability to the City; and
WHEREAS, On February 5, 1997, pursuant to a request from Sterling seeking all
extension of the deadline by which the City may reject Sterling's proposal and terminate th.~
transaction, the Mayor and City Commission herein authorized the City Manager to execuk aJ 1
amendment to the December 10, 1996 Letter Agreement, granting Sterling a 120 day extensor,
commencing on February 6, 1997 and ending on June 6, 1997; and
WHEREAS, On May 27, 1997, the City Manager received a request from Sterling f()]
an additional 120-day extension of the deadline by which the City may reject Sterling's proposal
to terminate the transaction; and
WHEREAS, the Administration recommends that the Mayor and City CommissiOl L
herein authorize the City Manager to authorize the City Manager to execute a second amendm en ..
to the December 10, 1996 Letter Agreement, granting Sterling a 125 day extension, commencinl.,
on June 6, 1997; and
WHEREAS, granting said 125 day extension will continue to keep the City's options o:Jel
with respect to insuring a movie theater development on Lincoln Road and provide an incentive fo'
LRI of South Florida, Ltd., and Finestra Development Corporation to continue to proceed ] n ; :.
timely manner with their Beach Cinema project.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CIf'.'
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, authorizing the City Manege'
to execute a second amendment to that certain Letter Agreement, dated December 10, 1 S 96.
between the City and Sterling Miami Beach Theater Associates, Ltd. (Sterling), regarding th:
designation of Sterling for negotiation of its response to Request for Proposals No. 104-95/96, fo'
a multiplex movie theater on Lincoln Road (RFP); said amendment extending the time period b: .
which the City is required to either commence negotiations with Sterling, or reject the propo:;al:
submitted by Sterling in response to the RFP, by 125 days, thereby extending the deadline flOn:1
June 6, 1997 to October 9, 1997.
PASSED and ADOPTED this 4th
/'
~
ATTEST:
~()~r f~~
CITY CLERK
APPROVED AS TO
FORM & lANGUAGE
& FOR EXECUTION
~ Mfl//~ stv~;,
ityt.~. Date
TEW & BEASLEY, L. L. P.
MIAMI CENTER 26TH FLOOR
201 SOUTH BISCAYNE BOULEVARD
MIAMI, FLORIDA 33131-4336~... i
TELEPHONE (305) 536-1112
FACSIMILE (305) 536-1116
j" ,
L,', J
(". r ,""t
WRITER'S DIRECT LINE
539-2480
:,. ,..P.A,LM.S:EACH OFFICE
i'} r: i ."9<:?'.~.,~AU BUilD I NG . SU ITI: le)o
319 CLEMATIS STREET
WEST PALM BEACH. FLOR'DA 3l4C '-4624
TELEPHONE 15611835-4 =O(
FACSIMILE (561) 835 - Ie 42
May 20, 1997
Mr. Jose Garcia-Pedrosa
City Manager
1700 Convention Center Drive
Miami Beach, FL 33 139
RE: RFP No. 104-95/96
Dear Mr. Garcia-Pedrosa:
This firm represents Sterling Theater Associates, Ltd. in the above referenced matt(~r. On
December 10, 1996 the City of Miami Beach and Sterling Associates, Ltd. entered into an
agreement whereby the City agreed to either commence negotiations with Sterling by Feb~Ul ry 6,
1997 or advise Sterling in writing that it had decided not to commence negotiations. On J,m ary
30, 1997 the City of Miami Beach and Sterling Theater Associates, Ltd. entered into an a~re .~ment
to extend, the December 10, 1996 agreement for a period of 120 days.
The 120 day extension will expire on June 6, 1997. The purpose of this letter is to req .lest
that the December 10, 1996 agreement be extended for an additional period of 120 days.
Furthermore, we request that this item be placed on the June 4, 1997 City Commission agen4 ila.
If you have fin)' questions, please do not hesitate to contact me.
Sincerely,
W~
ALCARDENAS
AC
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139
TO:
FROM:
SUBJECT:
COMMISSION MEMORANDUM NO. ~
Mayor Seymour Gelber and
Members of the City Commission
DATE: June 4, 1997
Jose GarCia_pedrosl1
City Manager
A RESOLUTION 0 THE MAYOR AND CITY COMMISSION OF TH]II~
CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE Clr'(
MANAGER TO EXECUTE A SECOND AMENDMENT TO THAT CERTAIN
LETTER AGREEMENT, DATED DECEMBER 10,1996, BETWEEN TH~i~
CITY AND STERLING MIAMI BEACH THEATER ASSOCIATES, LTI'.
(STERLING), REGARDING THE DESIGNATION OF STERLING FOlR
NEGOTIATION OF ITS RESPONSE TO REQUEST FOR PROPOSALS :~O.
104-95/96, FOR A MULTIPLEX MOVIE THEATER ON LINCOLN ROAJII)
(RFP); SAID AMENDMENT EXTENDING THE TIME PERIOD BY WHl CH
THE CITY IS REQUIRED TO EITHER COMMENCE NEGOTIATION ~
WITH STERLING, OR REJECT THE PROPOSALS SUBMITTED BY
STERLING IN RESPONSE TO THE RFP, BY 125 DAYS, THEREB'l
EXTENDING THE DEADLINE FROM JUNE 6, 1997 TO OCTOBER III,
1997.
ADMINISTRATION RECOMMENDATION:
It is recommended the Mayor and City Commission of the City of Miami Beach, Florida adop: tl e
attached resolution.
BACKGROUND
On November 6, 1996, the City Commission approved in concept, the proposal submitted 1 y
Sterling Miami Beach Theater Associates, Ltd., (Sterling), the sole proposer to City of Miami B~a(h
Request for Proposals No.1 04-95/96 for a Multiplex Movie Theater on Lincoln Road (RFP). TIe
designation of Sterling's proposal for negotiations was subject to certain conditions specified in a
Letter Agreement between the City of Miami Beach and Sterling, executed on December 10, 1995.
The agreement allowed the City until February 6, 1997, to commence negotiations with Sterlin~,
or to reject Sterling's proposal, at the City's sole discretion, for any or for no reason, and to termna:e
the entire transaction without any liability to the City.
AGENDA ITEM
C.'~
to-~.~
DATE
On February 5, 1997, pursuant to a request from Sterling seeking an extension of the deadline b~
which the City may reject Sterling's proposal and terminate the transaction, the Mayor and Cit~
Commission authorized the City Manager to execute an amendment to the December 10, 1996 Lette'
Agreement, granting Sterling a 120 day extension, commencing on February 6, 1997 and ending 01
June 6, 1997.
On May 27, 1997, the City Manager received a letter from Al Cardenas of Tew & Beasley
requesting an additional 120-day extension of the deadline by which the City may reject Sterling':,
proposal to terminate the transaction.
ANALYSIS:
Coinciding with the designation of Sterling's proposal for negotiations on November 6, 1996, tht..
City Commission also adopted a resolution approving the vacation of a portion of Lincoln Lmt
separating the two parcels comprising LRI/Finestra's South Beach Cinema project. Approval of'hi:..
resolution cleared the way for an entirely private development project to occur at virtually no (OS
and significant benefit to the City.
The decision to proceed with negotiations with Sterling for the development of their theater pro~ ec,
on two City-owned lots rested upon the progress ofLRI/Finestra's project, which to date has h~el..
moving forward with site clearing, environmental remediation, completion of construction plan:.
and the imminent pulling of foundation permits.
The Administration is of the opinion that granting an additional extension to the June 6th dead:inl:
by which the City may reject Sterling's proposal, will continue to keep the City's options O:Jel
with respects to ensuring a movie theater development on Lincoln Road, and will mainlail :,
pressure on LRI/Finestra to proceed without delay on their project.
Since a 120 day extension would fall on Saturday, October 4 1997, just prior to the firs.:
Commission meeting in October, the Administration recommends extending the deadline t("
Thursday, October 9th, the day after the Commission meeting, thereby allowing for any fur1he'
amendments or rejection of Sterling's proposal.
Conclusion
The proposed second amendment to the December 10th Letter Agreement between the Citymt Il
Sterling contains exactly the same protective provisions as the original agreement and the Hrs:
amendment there to, giving the City the option of entering into negotiations with Sterling, or ttl
reject Sterling's proposal, at the City's sole discretion, for any or for no reason and to terminate th:
entire transaction without any liability to the City within 125 days of the June 6th dead.in:
currently set forth in the February 5, 1997 amendment to the December 10th Letter Agreem.:.m1.
JGP~Ob
Attachment