195A-95 RDA
RESOLUTION NO.
19')A-95
THE CHAIRMAN AND MEMBERS OF THE MIAMI BEACH
REDEVELOPMENT AGENCY AUTHORIZE AND DIRECT THE
AGENCY TO OFFER HCF GROUP, INC. UNTIL JUNE 13,
1995 WITHIN WHICH TO OBTAIN A HOTEL CHAIN
AFFILIATION AND ADDITIONAL EQUITY, AS
SPECIFICALLY DESCRIBED IN THIS RESOLUTION.
WHEREAS, the city Administration received the attached letter
from Peter Calin of the RCF Group, Inc. ("RCF"), advising that
Sheraton had withdrawn from the project; and
WHEREAS, Sheraton had proposed an $8 million equity
contribution which was pivotal to RCF for the financing of this
project; and
WHEREAS, RCF has asked for time to obtain a replacement hotel
affiliation and to obtain the financial participation required for
this project; and
WHEREAS, the City and the Miami Beach Redevelopment Agency
("Agency") consistently have reaffirmed their commitment to assist
in the development of an African-American owned hotel.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE CHAIRMAN AND
MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY that the Agency is
authorized and directed to offer RCF until June 13, 1995 within
which to obtain a hotel chain affiliation and additional equity,
subject to the terms and conditions as described herein:
1. No later than April 14, 1995, RCF shall submit, in
writing, to the Executive Director of the Agency a progress report
specifically identifying the names of hotel operators with whom
they have had discussions, the officials with whom the discussions
have been held, and the progress made with said officials.
2. No later than April 29, 1995, HCF shall submit, in
writing, to the Executive Director of the Agency, the name of the
hotel chain that has been selected by HCF and the proposed
financial arrangements with that operator. No later than April 29,
1995, HCF shall submit an updated schedule for equity participation
in the project by the new operator, HCF and any other sources.
After April 29, 1995, the Agency's hotel negotiating team will
provide a recommendation to the Agency as to whether any further
time should be granted to HCF to meet the requirements of this
resolution.
3. After the negotiating team has made a recommendation as
provided above, if the Agency continues to allow HCF additional
time, then, no later than June 13, 1995, HCF shall submit to the
Executive Director of the Agency an agreement executed by both HCF
and said hotel operator evidencing the hotel operator's binding
co~~itment to act as hotel operator for the project and the ability
to fulfill all financial obligations of the project. In the event
the Agency has continued to grant further time as discussed above,
HCF will also present to the Agency, no later than June 13, 1995,
a letter which shall constitute a binding commitment by individuals
and/or entities to infuse the additional equity needed for
completion of the project. That letter will be signed by all such
individuals and/or entities. Provided that the conditions
2
indicated in the preceding three sentences have been met, and the
hotel operator and the equity participants, and the agreements
and/or commitments between them and RCF are acceptable to the City
and the Agency, a schedule for negotiations will be established.
4. Neither the city nor the Agency is obligated to grant
this extension or any further extension of time regarding any of
PASSED and ADOPTED this
day of
the above steps.
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3
.
Peter J. Calln
PrciIdcIII
Jerry D. Balky
Eugene ford. Jr.
.WVin Holloway
P.O. Box 144201
M1aml. Florida 33114
(305) 233-7781
fas (305) 233-7781
r. r-
March 3, 1995
Roger Carlton
City Manager
City of Miami Beach
City Hall 1700 Convention Center Drive
Miami Beach, FL 33139
Mr. Carlton:
I want to inform you that David Proch-Wilson of Sheraton has
contacted me to inform me that Sheraton has decided to withdraw from
our development project.
David indicated that Sreraton's management met recently to review
and reprioritize the corf;Jany's 1995 capital commitments, Its
management decided to give priority to cities where it had no
presence and reallocated the
$8 million of capital committed to Miami Beach to other projects.
HCF acknowledges and appreciates the support we have received
from the City of Miami Beach in making this hotel development a
reality. We all have a strong vested interest in making this happen and
with your continued help, we will.
We all relied on Sheraton's representation that it was committed to the
HCF-Sheraton Suites hotel project. Sheraton. however, has made a
business decision to withdraw, Nevertheiess, we still have an
attractive development project that another hotel chain and investors
will find appealing. We view Sheraton's departure as an unfortunate
delay representative of the myriad of obstacles common to new hotel
development. It is demonstrative of why there has been no new hotel
development on the Beach in over 25 years. If we continue to work
together, however, it is an easily surmountable obstacle to our mutual
goal of building a new African-American owned hotel on Miami Beach.
.
HCF requests the City's continued cooperation and support, After
presentation to Sheraton's Board was postponed in February, we
thought it prudent to explore the interest of other hotel chains in our
project. Both Marriott and Hyatt have expressed strong interest.
Peter J. Calln
rrakSall
,
Jerry o. Bailey
Eugene ford, Jr.
cc: Jerry D. Bailey
Eugene Ford, Jr.
Marvin Holloway
Marvin Honoway
P.O. Box 144101
M1ami. Florida 33114
(305) 233-7781
Fax (30S) 233-7781
:2
Miami Beach
Redevelopment Agency
1700 Convention Center Drive
Miami Beach, Florida 33139
Telephone: (305) 673-7193
Fax: (305) 673-7772
REDEVELOPMENT AGENCY MEMORANDUM NO. 95-18
DATE: MARCH 15,1995
TO:
CHAIRMAN SEYMOUR GELBER
.MEMBERS OF THE MI~BEA REDEVELOPMENT AGENCY
LAURENCE FEINGOL
GENERAL COUNSEL ~
ROGER M. CARLTON ~ ...1) ~
EXECUTIVE DIRECTOR ~
FROM:
SUBJECT:
THE AFRICAN-AMERICAN OWNED HOTEL
RECOMMENDA TION:
It is the recommendation of the Miami Beach Redevelopment Agency ("Agency") that the Agency
adopt the attached resolution and offer the HCF Group, Inc. ("RCF") 45 days from March 15, 1995
within which to obtain a hotel chain affiliation (flag) and additional equity, as more specifically
described below:
1. Within 20 days, HCF shall submit, in writing, to the Agency a progress report specifically
identifying the names of hotel operators with whom they have had discussions, the officials
with whom the discussions have been held, and the progress made with said officials.
2. Within 30 days, HCF shall submit, in writing, to the Agency, the name of the hotel chain that
has been selected and the proposed financial arrangements with that operator. At the same
time, HCF shall submit an updated schedule for equity participation in the project by the new
operator, HCF and any other sources.
3. Within 45 days, HCF shall submit to the Agency an agreement executed by both HCF and
said hotel operator evidencing the hotel operator's binding commitment to act as hotel
operator (flag) for the project and the financial obligation of the operator regarding the
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AGENDA ITEM 2~
March 15, 1995
project. HCF will also present to the Agency, within that same 45 days, a letter which shall
constitute a binding commitment by individuals and/or entities to infuse the additional equity
needed for the project. That letter will be signed by such individuals and/or entities. If the
conditions indicated in the preceding two sentences have been met, the Agency will consider
approving the affiliation and establishing a schedule for negotiations.
4. Neither the City nor the Agency is obligated to grant this extension or any further extension
of time regarding any ef the above steps in the event the conditions described above are not
met.
BACKGROUND:
The City Administration received the attached letter from Peter Calin of HCF, advising that Sheraton
had withdrawn from the project. Sheraton had proposed an $8 million equity contribution which was
pivotal to the financing of this project. HCF has asked for an opportunity to obtain a replacement
hotel affiliation, financial participation to fill the $8 million void, and equity which HCF must locate
itself.
ANALYSIS:
The Agency's negotiating team believes that it is reasonable to give HCF no more than 45 days to
obtain another hotel chain and the required equity. The City and the Agency consistently have
reaffirmed their commitment to assist in the development of an Afiican-American owned hotel. It
is important that the project proceed parallel with the proposed Loews hotel particularly now that the
Agency has furthered its commitment by acquiring the Royal Palm Hotel as a site for the proposed
Afiican-American owned hotel. The negotiating team is recommending that the Agency adopt the
attached resolution and offer HCF a 45-day time period as described in the "Recommendation"
section above.
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