225-95 RDA
RESOLUTION NO.
225-95
A RESOLUTION OF THE CHAIRMAN AND MEMBERS OF
THE MIAMI BEACH REDEVELOPMENT AGENCY RELATING
TO THE HCF GROUP, INC. PROPOSAL FOR DESIGN AND
CONSTRUCTION OF A HOTEL FACILITY; RECITING
INADEQUACIES IN PROPOSED BANK FINANCING;
PROVIDING UNTIL DECEMBER 18, 1995 TO OBTAIN A
BINDING LOAN COMMITMENT SATISFACTORY TO THE
REDEVELOPMENT AGENCY AND CITY; PROVIDING FOR
DEFAULT AND TERMINATION OF THE PROPOSAL;
SETTING AN EFFECTIVE DATE.
WHEREAS, the HCF Group, Inc. (HCF) was granted until November
15, 1995 within which to produce and present a binding commitment
for bank financing; and
WHEREAS, on or about November 16, 1995, HCF presented a letter
of proposal dated November 15, 1995 with multiple attachments
purporting to be a commitment, however said proposal which contains
multiple contingencies and conditions including requirements
imposed on the Miami Beach Redevelopment Agency (Agency) which are
not accel--table to the Agency and with which the Agency cannot
legally comply; and
WHEREAS, the requirements of that letter of November 8, 1995
from the city of Miami Beach to HCF have not been met by HCF.
NOW, THEREFORE BE IT RESOLVED by the Chairman and Members of
the Miami Beach Redevelopment Agency that:
1) HCF is given until December 18, 1995 at 5:00 p.m. within
which to present to the Executive Director of the Agency
a binding commitment for bank financing acceptable to the
Executive Director, as well as such other and further
documents previously required by the Agency or the City.
.
2 )
In the event of failure of HCF to provide the aforesaid
binding commitment and meet the Agency's and the City's
previously required condition by 5:00 p.m. on Monday
December 18, 1995, then the HCF proposal shall in its
entirety be deemed in default, void and of no further
force and effect.
3) In such latter event, the Agency Administration is
directed to have prepared for submission to the Agency
Board for approval at their meeting on December 20, 1995
a new Request for Proposals to provide the facility which
is the subject of the defaulted proposal.
4) This Resolution shall take effect upon adoption.
PASSED AND ADOPTED this 21st
, 1995.
ATTEST:
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FORM APPROVED
REDEVELOPMENT AGENCY
GENERAL COUNSEL
By /!#f l1Ad
Date Iv( (1/75
.
Miami Beach
Redevelopment Agency
1700 Convention Center Drive
Miami Beach, Florida 33139
Telephone: (305) 673-7193
Fax: (305) 673-7772
REDEVELOPMENT AGENCY MEMO NO. 95-70
November 21, 1995
TO:
Chairman and Members of the Miami Beach
Redevelopment Agency L~
Jose Garcia-Pedrosa, Executive Directorf~'
Report and recommendations regarding ~~ Project
FROM:
SUBJECT:
RECOMMENDATION:
Consider the report and recommendations of the negotiating team
which will be presented to the Redevelopment Agency ("Agency") at
the November 21, 1995 meeting by the Chairman, Arthur Courshon.
BACKGROUND:
The City's negotiating team has been working very closely with the
principals of HCF in order to attempt to address financial as well
as programmatic issues. This project has had numerous extensions
since the initial decision by the Agency to enter into negotiations
in September of 1994. Attached is a brief chronology of Agency
extensions and other actions after Sheraton's announced withdrawal
in March of 1995.
ANALYSIS:
The attached correspondence reflects recent discussions with the
principals. A specific response to the correspondence has been
requested by the City's negotiating team. Upon receipt of the
response, the negotiating team will meet on November 20, 1995 to
discuss and formulate its final recommendations to the
Redevelopment Agency. The recommendations of the negotiating team
will be presented at the November 21, 1995 meeting by the Chairman.
CONCLUSION:
The Redevelopment Agency will receive a full report at the November
21, 1995 meeting.
JGP :HSM: jm
Attachments
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l?edevel{)pment V.stnet
CIIT Ct:~Tt:l?
l?edevel{)pment Vistriet
AGENDA ITEM 2-A
November 21, 1995
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RCF POST-SHERATON CHRONOLOGY
March 2 HCF letter to M Meyer outlining efforts to raise $3 million in equity
March 3 HCF letter to R. Carlton notifying him of Sheraton pull-out
March 15 Commission passes a resolution giving HCF 45 days to obtain a hotel chain
and additional equity. The resolution required an indication of a
replacement operator and equity source by April 29 and a binding commitroer t for
equity by principals by June 13
March 21 Arthur Comshon letter to HCF passi.ng on interest expressed by Peabody to H:F
April 28 RCF letter to R. Carlton indicating a commitment from Westin to develop a 3 ~9
rOom $61.7M project on both sites, and a 200 room $20M project conunitmer t on
the Royal Palm site from Dacra.
May 23 MM letter to ReF reviewing project estimates contained in the Westin propm al
June 14? Commission grants a 30-day extension to the June 13 deadline
July 26 Commission re-confirms HCF right to negotiate exclusively a contract with t1 te
City for development of the Royal Palm
Aug 1 MM letter to RCF requesting RFP program elements by Oct 1
Aug 31 Fax memo from Craig Robbins to Arthur Courshon memorializing earlier
conference call with AC and MM discussing acceptable financial structure
Sept 25 RCF submission to Arthur Courshon responding to M Meyer Aug l1etter
requesting program information as per the original RFP
Oct 2 M Meyer letter to HCF requiring clarification of capital structure and capital
commitment by November 1
Oct 17 M .Meyer letter to Royal Palm Associates stating understanding of deal and
progr.m1 structure
Oct 25 C Robbins letter to M Meyer reacting to M Meyer Oct 17 letter and meeting
discussions
Nov l Revised operating projections sent by Carnival after earlier meeting with Tis 1tIl3l1
Nov 2 HCF letter outlining capital structure and bank interest in response to M Me: 'er
letter of Oct 2
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Nov8
Nov8
Nov 10
M Meyer response to Nov 2 letter imposing a Nov 15 deadline for bank
comminnent
P Diamond letter review ofHCF budgets and projections submitted on Sept 2~
J Bailey ofHCF letter to M Meyer asking clarification of Loews financial deal
structure