210-95 RDA
RESOLUTION NO.
210-95
A RESOLUTION OF THE CHAIRMAN AND MEMBERS OF
THE MIAMI BEACH REDEVELOPMENT AGENCY
AMENDING MIAMI BEACH REDEVELOPMENT AGENCY
RESOLUTION NO. 195-95, PROVIDING HCF GROUP, INC.
AN ADDITIONAL THIRTY (30) DAYS WITHIN WHICH TO
OBTAIN A HOTEL CHAIN AFFILIATION AND ADDITIONAL
EQUITY
WHEREAS, on March 15, 1995, the Miami Beach Redevelopment Agency (the
"Agency") adopted Resolution No. 195-95 ("First Resolution")(copy attached), providing
that the HCF Group, Inc, ("HCF") would have until June 13, 1995 within which to obtain
a hotel chain affiliation and additional equity, subject to the terms and conditions of the
First Resolution; and
WHEREAS, since the adoption of that First Resolution, HCF has submitted
progress reports as provided in the First Resolution, and has been analyzing and
negotiating various issues relating to their proposed hotel project; and
WHEREAS, the First Resolution provided, among other things, that HCF would
provide to the Agency binding written commitments regarding a hotel operator and the
infusion of equity by June 13, 1995; and
WHEREAS, HCF is in the midst of negotiations with various individuals and entities
regarding the proposed project; and
WHEREAS, HCF has requested an additional thirty (30) days beyond June 13,
1995 within which to comply with the First Resolution; and
WHEREAS, the City and the 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:
1. Agency Resolution No. 195-95 is amended so that the words "June 13, 1995"
will be replaced with the words "July 13, 1995" wherever those words appear in that
resolution,
2, In the event of any conflicts between this resolution and Agency Resolution
No. 195-95, this resolution shall prevail.
3. All other terms and provisions of Resolution No. 195-95 are unchanged.
PASSED and ADOPTED this June , 1995.
1"/...------;)
By
Date
ATTEST:
C ;\WPWIN601PIA \RESOS\HCF .RES
2
RESOLUTION NO.
195-95
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 Cal in of the HCF Group, Inc. (lIHCFlI), advising that
Sheraton had withdrawn from the project; and
WHEREAS,
Sheraton had proposed an $8 million equity
contribution which was pivotal to HCF for the financing of this
project; and
WHEREAS, HCF 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
(lIAgencyll) 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 HCF 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, HCF 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
commitment 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 HCF 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
i.
day of
the above steps.
PASSED and ADOPTED this
,
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FORM APPROVED
REDEVELOPM AGENCY
GEN NSEL
~
C:\WP~N60\PIA\HOTEL.RES
3
.
Peter J. Calli1
rrcJ,Il5aI&
Jerry D. Balky
Eugene ford, Jr.
'..umn HoUow-ay
P.O, Box 144201
rdbml. Florida 33114
(305) In.7781
fax (305) In.7181
'. ~-
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 Oavid Proch-Wilson of Sheraton has
contacted me to inform me that Sheraton has decided to withdraw from
our development project..
Oavid indicated that Soeraton's management met recently to review
and reprioritize the co",~any'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.
Petet J. Call.a
hUldaI&
,
Jerry O. BaUer
E~ Ford, Jr.
cc: Jerry D. Bailey
Eugene Ford, Jr.
Marvin Holloway
Marvin Holloway
P.O. 801. 144201
MWni. f'1orid2 3311 t
(30S) 23l- 7781
Fa (305) 133-7181
2
Miami Beach
Redevelopment Agency
1700 Convention Center Drive
Miami Beach, Florida 33139
Telephone: (305) 673-7193
Fax: (305) 673-7772
REDEVELOPMENT AGENC~MEMORANDUM NO. 95-45
'"
\,
June 21, 1995
TO: Chairman and Members of the Board
of the Redevelopment Agency
FROM:
Jose G~rcia~pedro~a ~
Execut,ve D'rector~~
~
SUBJECT: A RESOLUTION OF THE CHAIRMAN AND MEMBERS OF THE MIAMI
BEACH REDEVELOPMENT AGENCY AMENDING MIAMI BEACH
REDEVELOPMENT AGENCY RESOLUTION NO. 195-95, PROVIDING HCF
GROUP INC. AN ADDITIONAL THIRTY (30) DAYS WITHIN WHICH TO
OBTAIN A HOTEL CHAIN AFFILIATION AND ADDITIONAL EQUITY
RECOMMENDATION
It is recommended that the Miami Beach Redevelopment Agency (the
"Agency") Board adopt the Resolution granting HCF Group, Inc. an
additional thirty (30) days from June 13, 1995, to July 13, 1995,
within which time to obtain a hotel chain affiliation and
additional equity.
BACKGROUND
On March 15, 1995, the Agency adopted Resolution No. 195-95,
providing that the HCF Group, Inc. would have until June 13, 1995
to meet specific performance requirements relating to their
proposed hotel project. One of the requirements was that HCF would
provide to the Agency binding written commitments regarding a hotel
operator and the infusion of equity by June 13, 1995. Negotiations
are ongoing and HCF has requested an additional thirty (30) days to
comply with all of the requirements of Resolution No. 195-95.
svurn VVI~
Vedevel()pment DIstr1c::t
CIIT CI:~V
~evel()pment DIstr1c::t
AGENDA :ITEM 2-C
Jtme 21, 1995
ANALYSIS
The City of Miami Beach and the Agency have consistently reaffirmed
their commitment to assist in the development of an African-
American Hotel. The Hotel Negotiations Team has recommended that
this extension be granted. A letter from Arthur Courshon, Chairman
of the Hotel Negotiations Team, is attached.
CONCLUSION
It is recommended that the Agency adopt the Resolution granting the
thirty (30) day extension.
JGP: LMF: jm
Attachment
. .IEf'fF.R.Sa'f {" ~"; ~oc
-***.
JEFFERSON BANK BUILDING
ARTHUR H. COORSHON
0lPNn cI ". 80erG a ~
3~1-41" STREET CAATliUR GOOI-"REY ROAl))
MIAMI BE:ACIi. I"LOAIOA 33t.o-TD..EPHOt.lE (305) S32~5t
TO:
SUSAN GOTTLIEB
HARRY HAVROGENES
LARRY FEINGOLD
JOSB GARCIA PEDROSA ~ ~
ARTIIIJR H. COfIRSHONt.f/K-
JUNE 15, 1995
mOK:
DATB:
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As you know, there was a meeting yesterday morning of the Negotiat-
ing Team representing the city, at City Hall.
As Chairman of the committee, I report to all of you that HCF is in
the middle of protracted negotiations with two groups that could
prove to be viable.
HeF has requested an extension of thirty (30) days to comply with
the original Resolution of March 15, 1995.
After reviewing HeF's progress thoroughly with Mike Meyer of
Tishman Realty, I respectfully suggest that the extension be
granted and where the original Resolution was as of June 13, 1995
that this Resolution simply be amended to read as of July 13, 1995_
Unfortunately, I have an irreconcilable conflict on June 21st and
cannot be present. Therefore, I would appreciate if Commissioner
Gottlieb, as liaison to the City Commission, or Manager, Jose
Garcia-Pedrosa, submit this memo to the City Commission with my
recommendation for their review and determination.
Thank you.