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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 , . ~~'.' :: :~ . .. .., : . :..'" ~ >- >~~'f '. I 's ~ .,....:: -ECR~ARY .:. . . . " " .4 .,..,,, .. ~ ~' : ;J. ~ . ~ -:. ~ .... " V' ~ C '\. ^,'" ,~7 / . '10 ' ." "'. .\ . (", ..' .;.,: ';,., i" ,. '. '-';- .., ,,,,' ....-. "" J. II 3 ,\. ,." :i'';' -','J... 'It \ ,....~~....~....l.,.. '" ,-. Of '-'f'" .. ". ~"....",t" ....1--'1. .. I _....'-~. .:..... . t...4.,r..;...:;,..<.;.r.:....~.:)j:.. CVv-'" 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: -------~~~~~~~~~---------~~~~---~~-----------~--~~-~~~~-----------~ 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.