RESOLUTION 93-20853 i 1 1
RESOLUTION NO. 93-20853
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA AUTHORIZING THE MAYOR AND CITY
CLERK TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT WITH
ARTHUR ANDERSEN, AND CO. , SC FOR THE PURPOSE OF PROVIDING
ADVISORY SERVICES FOR THE SOLICITATION OF DEVELOPMENT
PROPOSAL FOR A CONVENTION HEADQUARTERS HOTEL.
WHEREAS, the City of Miami Beach ("City") issued Request
for Proposal No. 81-92/93 for Convention Hotel Developer
Solicitation; and
WHEREAS, Arthur Andersen & Co. , SC (Consultant) submitted a
proposal in response to City's Request for Proposal ; and
WHEREAS, the City and Consultants have negotiated the attached
Agreement, and same has been recommended by the City Manager an
approved as to form by the City Attorney.
NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA that the Mayor and City Clerk
are authorized to execute the attached Consultant Agreement with
Arthur Andersen & Co. , SC for the ' .rpose of providing advisory
services for the solicitation 'f d=velopment for a convention
headquarters hotel.
PASSED and ADOPTED this 28t 'say of Jul . Ar , , 1993 .
MAYOR
ATTEST:
CI Y CLERK
RJA:jm FORM APPRO\/[D
LEGAL D[F
c:\wp51\data\andersen.res
By J L�
Date 1' 2-4". C
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CITY O MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139
OFFICE OF THE CITY MANAGER TELEPHONE: (305) 673-7010
FAX: (305) 673-7782
COMMISSION MEMORANDUM NO. _
3
TO: Mayor Seymour Gelber and DATE: July 14 , 1993
Members of the City Commission
FROM: Roger M. •. t.
City Man.• • /
SUBJECT: RESOLUTION AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE
A CONSULTANT AGREEMENT WITH ARTHUR ANDERSON AND COMPANY FOR
CONVENTION HOTEL DEVELOPER SELECTION SERVICES
ADMINISTRATION RECOMMENDATION:
The Administration recommends that the Mayor and City Clerk be
authorized to sign the attached contract with Arthur Anderson and
Company.
BACKGROUND:
The City of Miami Beach solicited proposals for consultant services
to assist in the selection of a developer for a convention hotel . At
the June 30th Commission Meeting, the Commission selected Arthur
Anderson as the consultant.
The attached Scope of Services provides for the consultant to assist
the City all the way through negotiations.
Three levels of fees are proposed as an incentive program to the
consultant.
• A base fee of $50, 000.
• An additional fee of $10, 000 for every bonafide proposal
received by the City.
• An additional fee of $50, 000 for the contract for the first
hotel and $25, 000 for the second and third that are approved by
the City Commission.
• At this third level of fees, if the City Manager recommends a
proposal for Commission approval and it is rejected by the
Commission, the consultant is still entitled to a fee up to
$50, 000 based on actual fees incurred.
Travel and other incidentals would be subject to Manager's approval .
ANALYSIS:
This is a professional team that has dealt extensively with
development negotiations in the past. The fee schedule is fair and
designed to encourage the consultant to bring the best proposals to
the City for its consideration.
CONCLUSION:
The City Commission should approve the attached contract.
RMC:j ph
Attachments AGENDA
ITEM
-1-
DATE
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CONSULTANT AGREEMENT
This Agreement ("Agreement") dated this 3Y day of July, 1993
is between the City of Miami Beach ("Client") , located at 1700
Convention Center Drive, Miami Beach, Florida 33139 and Arthur
Andersen and Co. , SC ("Consultant") .
WHEREAS, Consultant is in the business of providing certain
services and is willing to provide such services to Client; and
WHEREAS, Client desires to utilize Consultant' s services as
provided for herein.
NOW, THEREFORE, in consideration of the mutual covenants and
promises contained herein, the parties hereto agree as follows:
1. GENERAL TERMS AND CONDITIONS
1. 1 The general terms and conditions of this Agreement are
set forth in Appendix A, attached hereto and incorporated
herein by reference.
2 . SCOPE OF SERVICES
2 . 1 Consultant shall provide the services set forth in
Appendix B, attached hereto and incorporated herein by
reference ("Services") . Consultant shall furnish all
deliverables as set forth in Appendix B in accordance
with the terms set forth therein (hereinafter
"Deliverables") , and as further delineated in
Consultant' s Response to Request for Proposal No. 81-
92/93 attached hereto as Exhibit 1; said Response dated
June 2 , 1993 , and
Unless specifically provided for in this Agreement, any
service which the Client requests to be performed by
Consultant not specifically included within the Scope of
Services set forth in Appendix B shall be deemed to be an
Additional Service. Any Additional Service must be
authorized in writing by the parties to this Agreement,
in advance of its performance. Fees for Additional
Services shall be negotiated by the parties in accordance
with the Fee Proposal set forth in Appendix C.
3 . PERIOD OF PERFORMANCE
3 . 1 The period of performance for this Agreement shall be
from the last signature date of contract execution
through completion of the deliverables or December 31,
1994 whichever is longer.
4 . FEES AND PAYMENT
4 . 1 In consideration of the Scope of Services set forth in
Appendix B, the Client shall pay Consultant in accordance
with the Fee Proposal, as set forth in Appendix C.
4 . 2 Payment for the Scope of Services as set forth in
Appendix B shall be made to the Consultant upon delivery
of each work product by Consultant as set forth in
Appendix B, and subject to Client' s review and acceptance
that same is in conformance with what is required for the
particular work product deliverable, as set forth in
Appendix B.
5. NOTICE
5. 1 Any notice giv,, by either party shall be in writing and
shall be deemed given, three (3) days after deposited in
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the United States mail, postage prepaid, certified return receipt
requested, or upon actual delivery to the other party at the
following Addresses:
TO CLIENT:
Office of the City Manager
City of Miami Beach
1700 Convention Center Drive
Miami Beach, Florida 33139
Office of the City Attorney
City of Miami Beach
1700 Convention Center Drive
Miami Beach, Florida 33139
TO CONSULTANT:
Mr. Michael A. Stein
Arthur Andersen & Co. , SC
Suite 2100
One Biscayne Tower
Miami, Fl 33131-1801
6. ENTIRE AGREEMENT
6. 1 Both parties acknowledge that they have read this
Agreement, understand it and agree to be bound by its
terms and further agree that it is the entire agreement
between parties hereto which supersedes all prior
agreements, written or oral, relating to the subject
matter hereof. No modification or waiver of any
provision shall be binding unless in writing and signed
by the party against whom such modification or waiver is
sought to be enforced.
IN WITNESS WHEREOF, Client and Co,1sultant have c-used this
Agreement to be executed by their du authorized rep /-sentatives
as of the date first written above.
Y OF MIAM
BY iiii1(
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MAYOR
ATTEST:
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C, (,,...C.AA, Cbvcrv‘,-
ITY
CLERK
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CONSULTA
FCAPPROVEDdi__, � r
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LEGAL DE .� 4fee,g WITN SS
44By ITNESS
Date -1-V. CI
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APPENDIX A
GENERAL TERMS AND CONDITIONS
1. CONSULTANT'S RESPONSIBILITIES. Consultant/Contractor
("Consultant") shall perform the Services utilizing the
standard of care normally exercised by professional consulting
firms in performing comparable services under similar
conditions.
2 . CLIENT'S RESPONSIBILITIES. The Client shall provide to
Consultant such data as may be reasonably available to Client
and as may required by Consultant to properly perform the
Services. Client shall provide site access at such times as
may reasonably be required by Consultant and shall make timely
payments in accordance with the terms of this Agreement.
3 . PROPRIETARY INFORMATION. Proprietary confidential information
("Proprietary Information") developed or disclosed by either
party under this Agreement shall be clearly labeled and
identified as Proprietary Information by the disclosing party
at the time of disclosure. When concurrent written
identification of Proprietary Information is not feasible at
the time of such disclosure, the disclosing party shall
provide such identification in writing promptly thereafter.
Oral communications pertaining to the Services shall be
presumed to be Proprietary Information unless otherwise
indicated by the disclosing party.
Each party shall handle Proprietary Information received from
the other party in the same manner as the receiving party
handles its own Proprietary Information. Disclosure of
Proprietary Information shall be restricted to those
individuals who need access to such Proprietary Information as
needed to ensure proper performance of the Services.
Neither party shall be liable for disclosure or use of
Proprietary Information which: (1) was known by the receiving
party at the time of the disclosure due to circumstances or
events unrelated to this Agreement; (2) is generally available
to the public without breach of this Agreement; (3) is
disclosed with the prior written approval of the disclosing
party; or (4) is required to be released by law or court
order.
Upon payment in full for each step of the Services, as set
forth in Appendix C, and unless otherwise stated herein,
deliverables, analyses and reports developed under this
Agreement ("Work Product") shall be the property of the
Client. The Consultant shall not disclose the Work Product
relating to the Services to a third party without the prior
written authorization of the Client. Client shall be solely
responsible for any disclosure of the Work Product which may
be required by law and agrees to indemnify and hold Consultant
harmless for any loss resulting from Client' s failure to make
such disclosure. Where applicable law requires immediate
disclosure by the Consultant, Consultant shall make its best
efforts to give prior notice to Client. At Client' s request
and expense, Consultant will assist the Client in making such
disclosures as may be required by law.
Ownership in the Work Product shall pass upon payment of the
related invoice.
Each party shall return all Proprietary Information relating
to this Agreement to the disclosing party upon request of the
disclosing party or upon termination of this Agreement,
whichever occurs first. Each party shall have the right to
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retain a copy of the Proprietary Information for its internal
records and subject to the restrictions set forth in this
Section. This Section shall survive termination of this
Agreement.
4 . ACCEPTANCE. Client shall have fifteen (15) days to reject all
or part of each deliverable as set forth in Appendix B. Each
work product deliverable to the extent not rejected in writing
by Client, shall be deemed accepted.
5. LIMITATIONS OF LIABILITY. Client desire to enter into this
Agreement only if in so doing it can place a limit on
liability for any cause of action for money damages due to an
alleged breach by either Party of this Agreement, so that
liability for any such breach never exceeds the sum of
$100, 000. The client hereby express their willingness to
enter into this Agreement with $100, 000 a limitation on
recovery for any damage action for breach of contract.
Accordingly, Client hereby agreed that it shall not be ,ii iable
to Consultant for damages in an amount in excess of 0, 000
for any action or claim for breach of contract arisin out of
the performance or non-performance of any obligations imposed
upon either by this Agreement. Nothing contained in this
section or elsewhere in this Agreement is in any way intended
to be a waiver of the limitation placed upon Client' s
liability as set forth in Florida statutes, Section 768 . 28 .
6. HEALTH & SAFETY. Client shall notify Consultant of any known
or suspected hazards existing at any site where the Services
are to be provided, including but not limited to hazardous
waste or substances and underground utilities.
7 . CONFLICT OF INTEREST. The Client acknowledges that the
Consultant provides similar services for a broad range of
other clients and agrees that Consultant shall be free to work
for other clients in matters that do not involve the use of
any Proprietary Information that has been disclosed by the
Client under the terms of this Agreement or do not directly
relate to the specific Services provided by the Consultant to
the Client under this Agreement.
8 . TERMINATION. Either party may, for their convenience,
terminate the services then remaining to be performed at any
time by giving written notice to the other party of such
termination, which shall become effective seven (7) days
following receipt of such written termination notice. In that
event, all finished or unfinished documents and other
materials as described in Appendix B shall be delivered to
Client. Client shall pay for services rendered through the
date of termination. Such payments shall be the total extent
of Client' s liability to the Consultant upon termination as
provided for in this paragraph.
9 . FORCE MAJEURE. Neither party shall be responsible for any
delay or failure in performance, except obligations to make
payments hereunder for work previously performed, to the
extent that such delay or failure was caused by a force
majeure event including Act of God, war, civil disturbance,
governmental action, labor dispute unrelated to the party
claiming the force majeure event, computer virus or denial of
access to the system or any other event beyond the reasonable
control of the claiming party.
Performance under this Agreement shall resume promptly once
the cause of delay or failure ceases and an equitable
adjustment shall be made to the price and/or schedule of the
Services.
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10. INSURANCE. During the term of this Agreement, Consultant
shall maintain the following insurance coverages and limits of
liability. Consultant' s liability shall be limited to amounts
paid to or on behalf of Consultant under policies listed
below, or to the value of this Agreement, whichever is
greater.
a. Workers Compensation Insurance with statutory limits and
Employers Liability Insurance including occupational disease,
with a limit of not less than $1, 000, 000.
b. Commercial General Liability insurance in an amount of at
least $1, 000, 000 per occurrence and $2 , 000, 000 in the
aggregate. This coverage shall include premises and
operations, explosion, collapses, and underground hazards
(XCU) , products and operations, contractual, independent
contractors, broad form property damage and bodily injury.
c. Comprehensive Automobile Liability Insurance in for
owned, hired, or non-owned vehicles in an amount not less than
$1, 000, 000.
All policies of insurance required by this section shall
indicate as a named or additional insured the City of Miami
Beach. On or before the commencement of this Agreement,
Consultant shall furnish Certificates of Insurance to Client
which shall clearly indicate that Consultant has obtained
insurance in the type, amount, and classifications required by
this Agreement.
11. DISPUTES. Any dispute relating to this Agreement shall be
submitted to a panel consisting of at least one
representative of each party who shall have the authority to
enter into an agreement to resolve the dispute. The panel
shall meet for a maximum of three days. Should this dispute
resolution be unsuccessful, the matter may be submitted by
either party to arbitration and no written or oral
representation made during the course of any panel proceeding
or other settlement negotiations shall be deemed a party
admission.
The arbitration shall be conducted in accordance with the
Arbitration Rules of the American Arbitration Association.
The award rendered by the arbitrators shall be final and
judgement may be entered upon it in accordance with the
applicable law in any court having jurisdiction thereof.
12 . INDEPENDENT CONTRACTOR. The Consultant is an independent
contractor and shall not be deemed to be an employee or agent
of the Client. Consultant shall indemnify and hold Client
harmless against all liability and losses resulting from
Consultant' s failure to pay all taxes and fees.
13 . INDEMNIFICATION/HOLD HARMLESS. The Consultant further agrees
to indemnify and hold harmless the Client and its officers,
employees and agents, from and against any and all actions,
claims, liabilities, losses, expenses, including but not
limited to attorney' s fees, for personal , economic or bodily
injury, wrongful death, loss of or damage to property, in law
or in equity, which may arise or be alleged to have arisen
from the negligent acts or omission or other wrongful conduct
of the Consultant or its subcontractors, employees, or agents
in connection with the Consultant' s performance of services
pursuant to this Agreement.
The Consultant' s obligation under this section shall not
include the obligation to indemnify the Client, its officers,
employees and agents, from and against any actions or claims
which arise or are alleged to have arisen from negligent acts
or omissions or other wrongful conduct of the Client, its
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officers, employees and agents.
The parties each agree to give the other party prompt notice
of any claim coming to its knowledge that in any way directly
or indirectly affects the other party.
c:\wp51\data\consult.agr
6
r r .
APPENDIX A
GENERAL TERMS AND CONDITIONS
1. CONSULTANT'S RESPONSIBILITIES. Consultant/Contractor
("Consultant") shall perform the Services utilizing the
standard of care normally exercised by professional consulting
firms in performing comparable services under similar
conditions.
2 . CLIENT'S RESPONSIBILITIES. The Client shall provide to
Consultant such data as may be reasonably available to Client
and as may required by Consultant to properly perform the
Services. Client shall provide site access at such times as
may reasonably be required by Consultant and shall make timely
payments in accordance with the terms of this Agreement.
3 . PROPRIETARY INFORMATION. Proprietary confidential information
("Proprietary Information") developed or disclosed by either
party under this Agreement shall be clearly labeled and
identified as Proprietary Information by the disclosing party
at the time of disclosure. When concurrent written
identification of Proprietary Information is not feasible at
the time of such disclosure, the disclosing party shall
provide such identification in writing promptly thereafter.
Oral communications pertaining to the Services shall be
presumed to be Proprietary Information unless otherwise
indicated by the disclosing party.
Each party shall handle Proprietary Information received from
the other party in the same manner as the receiving party
handles its own Proprietary Information. Disclosure of
Proprietary Information shall be restricted to those
individuals who need access to such Proprietary Information as
needed to ensure proper performance of the Services.
Neither party shall be liable for disclosure or use of
Proprietary Information which: (1) was known by the receiving
party at the time of the disclosure due to circumstances or
events unrelated to this Agreement; (2) is generally available
to the public without breach of this Agreement; (3) is
disclosed with the prior written approval of the disclosing
party; or (4) is required to be released by law or court
order.
Upon payment in full for each step of the Services, as set
forth in Appendix C, and unless otherwise stated herein,
deliverables, analyses and reports developed under this
Agreement ("Work Product") shall be the property of the
Client. The Consultant shall not disclose the Work Product
relating to the Services to a third party without the prior
written authorization of the Client. Client shall be solely
responsible for any disclosure of the Work Product which may
be required by law and agrees to indemnify and hold Consultant
harmless for any loss resulting from Client's failure to make
such disclosure. Where applicable law requires immediate
disclosure by the Consultant, Consultant shall make its best
efforts to give prior notice to Client. At Client' s request
and expense, Consultant will assist the Client in making such
disclosures as may be required by law.
Ownership in the Work Product shall pass upon payment of the
related invoice.
Each party shall return all Proprietary Information relating
to this Agreement to the disclosing party upon request of the
disclosing party or upon termination of this Agreement,
whichever occurs first. Each party shall have the right to
3
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retain a copy of the Proprietary Information for its internal
records and subject to the restrictions set forth in this
Section. This Section shall survive termination of this
Agreement.
4 . ACCEPTANCE. Client shall have fifteen (15) days to reject all
or part of each deliverable as set forth in Appendix B. Each
work product deliverable to the extent not rejected in writing
by Client, shall be deemed accepted.
5. LIMITATIONS OF LIABILITY. Client desire to enter into this
Agreement only if in so doing it can place a limit on
liability for any cause of action for money damages due to an
alleged breach by either Party of this Agreement, so that
liability for any such breach never exceeds the sum of
$100, 000. The client hereby express their willingness to
enter into this Agreement with $100, 000 a limitation on
recovery for any damage action for breach of contract.
Accordingly, Client hereby agreed that it shall not be liable
to Consultant for damages in an amount in excess of #30, 000
for any action or claim for breach of contract arising out of
the performance or non-performance of any obligations imposed
upon either by this Agreement. Nothing contained in this
section or elsewhere in this Agreement is in any way intended
to be a waiver of the limitation placed upon Client's
liability as set forth in Florida statutes, Section 768 . 28.
6. HEALTH & SAFETY. Client shall notify Consultant of any known
or suspected hazards existing at any site where the Services
are to be provided, including but not limited to hazardous
waste or substances and underground utilities.
7 . CONFLICT OF INTEREST. The Client acknowledges that the
Consultant provides similar services for a broad range of
other clients and agrees that Consultant shall be free to work
for other clients in matters that do not involve the use of
any Proprietary Information that has been disclosed by the
Client under the terms of this Agreement or do not directly
relate to the specific Services provided by the Consultant to
the Client under this Agreement.
8 . TERMINATION. Either party may, for their convenience,
terminate the services then remaining to be performed at any
time by giving written notice to the other party of such
termination, which shall become effective seven (7) days
following receipt of such written termination notice. In that
event, all finished or unfinished documents and other
materials as described in Appendix B shall be delivered to
Client. Client shall pay for services rendered through the
date of termination. Such payments shall be the total extent
of Client's liability to the Consultant upon termination as
provided for in this paragraph.
9. FORCE MAJEURE. Neither party shall be responsible for any
delay or failure in performance, except obligations to make
payments hereunder for work previously performed, to the
extent that such delay or failure was caused by a force
majeure event including Act of God, war, civil disturbance,
governmental action, labor dispute unrelated to the party
claiming the force majeure event, computer virus or denial of
access to the system or any other event beyond the reasonable
control of the claiming party.
Performance under this Agreement shall resume promptly once
the cause of delay or failure ceases and an equitable
adjustment shall be made to the price and/or schedule of the
Services.
4
10. INSURANCE. During the term of this Agreement, Consultant
shall maintain the following insurance coverages and limits of
liability. Consultant's liability shall be limited to amounts
paid to or on behalf of Consultant under policies listed
below, or to the value of this Agreement, whichever is
greater.
a. Workers Compensation Insurance with statutory limits and
Employers Liability Insurance including occupational disease,
with a limit of not less than $1, 000, 000.
b. Commercial General Liability insurance in an amount of at
least $1, 000, 000 per occurrence and $2, 000, 000 in the
aggregate. This coverage shall include premises and
operations, explosion, collapses, and underground hazards
(XCU) , products and operations, contractual, independent
contractors, broad form property damage and bodily injury.
c. Comprehensive Automobile Liability Insurance in for
owned, hired, or non-owned vehicles in an amount not less than
$1, 000, 000.
All policies of insurance required by this section shall
indicate as a named or additional insured the City of Miami
Beach. On or before the commencement of this Agreement,
Consultant shall furnish Certificates of Insurance to Client
which shall clearly indicate that Consultant has obtained
insurance in the type, amount, and classifications required by
this Agreement.
11. DISPUTES. Any dispute relating to this Agreement shall be
submitted to a panel consisting of at least one
representative of each party who shall have the authority to
enter into an agreement to resolve the dispute. The panel
shall meet for a maximum of three days. Should this dispute
resolution be unsuccessful, the matter may be submitted by
either party to arbitration and no written or oral
representation made during the course of any panel proceeding
or other settlement negotiations shall be deemed a party
admission.
The arbitration shall be conducted in accordance with the
Arbitration Rules of the American Arbitration Association.
The award rendered by the arbitrators shall be final and
judgement may be entered upon it in accordance with the
applicable law in any court having jurisdiction thereof.
12 . INDEPENDENT CONTRACTOR. The Consultant is an independent
contractor and shall not be deemed to be an employee or agent
of the Client. Consultant shall indemnify and hold Client
harmless against all liability and losses resulting from
Consultant's failure to pay all taxes and fees.
13 . INDEMNIFICATION/HOLD HARMLESS. The Consultant further agrees
to indemnify and hold harmless the Client and its officers,
employees and agents, from and against any and all actions,
claims, liabilities, losses, expenses, including but not
limited to attorney's fees, for personal, economic or bodily
injury, wrongful death, loss of or damage to property, in law
or in equity, which may arise or be alleged to have arisen
from the negligent acts or omission or other wrongful conduct
of the Consultant or its subcontractors, employees, or agents
in connection with the Consultant's performance of services
pursuant to this Agreement.
The Consultant's obligation under this section shall not
include the obligation to indemnify the Client, its officers,
employees and agents, from and against any actions or claims
which arise or are alleged to have arisen from negligent acts
or omissions or other wrongful conduct of the Client, its
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officers, employees and agents.
The parties each agree to give the other party prompt notice
of anyclaim coming to its knowledge that in any way directly
or indirectly affects the other party.
c:\ap51\data\consult.agr
6
APPENDIX B
To the Selection Committee:
FEE PROPOSAL
Our fee proposal is based on an estimated level of effort and the time me commitment of
mostly senior professional staff as described in the scope of work.
STEPS FEE
Step I -
$50,000
• Review and Evaluate Existing Materials
• Prepare Draft Marketing/RFP Prospectus
• Prepare a List of Potential Bidders
• Establish Guidelines for Proposal Response
• Finalize the Marketing Prospectus/RFP
• Attend and participate in community/interested party meetings
• Conduct three developer conferences (3 days to be jointly set by the
consultants and City Management)
• Develop and finalize selection criteria
Step II -
S 10,000
Per proposal meeting criteria
• Receive and review all proposals for satisfaction of criteria
• Coordinate and participate in proposal interviews
• Provide the City with a summary of all proposals together
with our recommendations and conclusions
Step III -
• Assist the City in the negotiations with the finalists:
•• Contract for the first hotel $50,000
•• Contract for the second and any additional hotels $25,000 each
Note: Payment for Step III will be received when the City Commission approves
the hotel contract(s). Should the City Manager recommend a contract and
same is declined by the City Commission, the consultant should be entitled
to the corresponding fee based upon professional time expended, not to
exceed the stated amounts.
• y
In addition to our fees we will bill for direct expenses for transportation, long distance
telephone charges,faxes,reproduction,per diems,etc.to be billed at cost and subject to prior
approval by the City Manager.
We understand that the printing production and distribution of all Developer RFP's will be
performed by the City. Should the decision be made for Arthur Andersen&Co.to perform
this task,we will bill at actual cost.
Our hourly rates for Phase III are:
Partner/Principal- $280-$320 per hr.
Manager - $150 per h r.
APPENDIX C
SCOPE OF SERVICES
Td accomplish the objectives of soliciting of developers and securing viable commitments to
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develop operate o erate one or more high quality, convention headquarters hotels, we propose
a series of sequential tasks as follows:
Task 1• Review And Evaluate Existing Materials.
At the outset of the engagement, we would review all materials,
tans or reportsprepared to date by or for the City concerning the
pp • Redevelopment and
'C� Center/Historic Convention Village
"City •
Revitalization Area". Of particular importance are:
• Market studies and related materials which indicate the nature
,. and type of the potential opportunity relative to hotel room
demand and achievable average daily room rates;
• Financial feasibility analyses and their underlying assumptions
and parameters with regard to the financial viability of one or
more convention headquarters hotels;
• Development plans for the area, including public commitments
for control of the development sites and. investment in
supporting area infrastructure; and
• Proposed incentive package to be provided to developers.
We will review these materials with a view to their suitability and
adequacy for summary and presentation to prospective
developer/bidders. During this process, we would identify any
potential deficiencies and review these with the City. If these
deficiencies are of a nature which would raise substantial
unresolved questions or risks to a potential developer/bidder, we
would clearly identify these areas and request the City address these
either in the context of further studies or other means.
TASK II. Prrpare A Marketing/RFP Prospectus.
Closely coordinating this task with the City, we will prepare a draft
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"prospectus"ros " to solicit developer/bidder interest in the convention
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headquarters hotel sites. At the commencement of this task, we
would discuss and review with the City the "prospectus" in terms:
• Content;
• Scope and type of information; .
• Specificity of terms; and
• Format of presentation.
Once these issues have been addressed, and agreed upon with the
City, we would then prepare a draft prospectus. The City would
retain control over the final approval of the content, language and
presentation of the package.
Concurrent with preparation of the solicitation package, we would
work with the City to identify and prepare supporting, detailed
information which would be provided to prospective
developers/bidders.
TASK III- Prepare A List Of Prospective Bidders.
This task would be divided into several steps. First, we would
prepare a comprehensive listing of potentially qualified developers,
investors, hotel operators and/or management companies, and the
like, who by virtue of their background, financial resources and
potential interest in the Miami Beach Convention market would be
highly qualified targets; this listing would be based on our world-
wide network of clients, interest and capabilities as well as our
industry-wide contacts. Second, we would review with the City
developers, hotel operators, franchise organizations and others who
have previously expressed interest in the development, operation
and ownership of a convention headquarters hotel on Miami Beach.
We would then combine these lists and carefully review it with the
City for overlap, duplication and the like. Lastly, we would
undertake a final review using our world-wide network to verify
potential candidates and to assure that the list is all encompassing.
Based on the preceding steps, we would then prepare a final list.
The final list would specifically identify:
• Name of organization; and
• Principal contact and address.
When approved by the City, this list would form the basis for
distribution of the marketing/RFP prospectus.
During this task,we would also review with the City procedures and
policies for solicitation and procurement of development interests,
including advertisement requirements and similar matters required
under either City codes or State statutes.
TASK IV- Establish Guidelines For Responses To The Request For
q Proposal.
In this task we would prepare a set of detailg uidelines, consistent
with City policies and industries practices for developmentment of
proposal responses. These guidelines would address such
matters
as:
• The complete proposing entity, including legal form;
• Demonstration of financial capacity to perform, including any
initial deposits;
• Propose business arrangements (e.g., deal terms);
• Individual authorized to commit and bind the proposingentity;
• Development concept and level of specificity;
• Propose timetable for proceeding if selected, and any
performance conditions;
• Relevant experience and references; and
• Financial statements.
T4SK V- Finalize And Issue The Marketing Package/RFP.
Upon approval the "draft" marketing/RFP prospectus bythe City,
includingcorporationp
in of guidelines for developer responses, we
will finalize the marketing/RFP prospectus.
We would then supervise printing, production and distribution of the
marketing/RFP prospectus to the approved list ofualified
developers, investors, hotel/management q
P /m nagement companies and franchise
operators, as agreed upon with the City. The distribution of the
prospectus would be consistent with applicable City and State law or
policies governing solicitations of this nature.
TASK VT- Prepare And Finalize Selection Criteria.
Concurrent with the finalization of the RFP, we wouldrear
p p can
initial set of selection criteria for review by the City. These ty selection
criteria would be
organized into several components as follows:
• Technical merits of developmentro osal;
P P ,
1 • a
• Strength and development capability of proposing entity;
• Financial capacity to perform; and
• Financial terms of the development deal.
After the issuance of the RFP, we would continue to refine the
specificity of criteria with the City as well as responsibilities for
evaluating proposals relative to the established criteria.
•
TASK VII- Coordinate And Participate In The Proposal Interviews.
Upon receipt of development proposals, we would work with the
City to conduct a technical review and verify all key aspects of the
development proposals in the context of the agreed upon evaluation
criteria established in Task VI. Included in the review would be:
• A financial analysis of the development proposal;
• Verification of financing capacity to perform; and
• Verification of credentials/capabilities.
Upon review of the development proposals, we recommend an
initial "confidential" ranking be prepared. This ranking would serve
as a basis to formulate key questions and issues to be addressed
during the interviews.
Next, we would coordinate and work with the City to schedule
interviews. We would establish a format, schedule, and outline an
agenda of items to be addressed with each developer, generally, as
well as with specific issues relative to each development proposal.
We would then assist and participate with the City in the interviews.
Based on the interviews, we would then coordinate a final review
and ranking of the development proposals.
The requested scope of work under RFP 81-92/93 did not identify services to be performed
beyond "coordinate and participate in the developer interview process." In our experience,
there arc several important subsequent steps. These include (1) formal selection of the
developer, (2) negotiation of a development deal and (3) documentation of business terms.
We are fully prepared to provide these services to the City of Miami Beach should these be
required upon completion of the stated scope of services in RFP 81-92/93.
RF_AL ESTATE ADVISORY SERVICES .
SCOPE OF SERVICES PROPOSAL
CONVENTION HOTEL DEVELOPER SOLICITATION
Request for Proposal No. 81-92/93
Submitted to:
City of Miami Beach
Florida
June 2, 1993
Prepared By
ARTHUR ANDERSEN
Arthur Andersen & Co, SC
ARTHUR ANDERSEN REAL ESTATE SERVICES GROUP
?J
REAL ESTATE AI)VISORYSERVICES
•
TRANSMITTAL LETTER
ARTHUR ANDERSEN REAL ESTATE SERVICES GROUP
f Fi
IUR
ANDERSEN
AR I HUR ANDERSEN&Co SC
Arthur Andersen&Co.
June 2, 1993
Suite 2100
Ms. Judith M. Ford One Biscayne Tower
I�liacni FL 33131-1801
Purchasing Agent 305 789 2578
Office of the Purchasing Agent 305 789 2573 Fax
City of Miami Beach
1700 Convention Drive
Miami Beach, FL 33139
Re: Request for Proposals No. 81-92/93
Convention Hotel Developer Solicitation
Dear Ms. Ford:
Arthur Andersen's Real Estate Services Group is pleased to submit this proposal to provide
advisory services for the solicitation of development proposal for a convention headquarters
hotel. Thisro osal is submitted with (1) original and (10) copies pursuant to the
P P
guidelines of Request for Proposal No. 81-92/93.
It is our understanding that the City of Miami Beach has expended considerable time and
resources to formulate plans for the development of one or more convention "headquarters"
hotels on sites proximate to the Miami Beach Convention Center. This effort is embodied
in the "City-Center" Master Plan for the Miami Beach Convention Center Area, including the Historic Convention Village Redevelopment Plan. These plans, as we understand it,
seek to attract one or more convention headquarters hotel properties to be developed with
physical linkages sical linka to the convention center and to stimulate the renovation of many of the
smaller historic hotels located in the area.
As we understand it, aspart of the planning efforts to date, the City has actively considered
and establishedp arameters for public and private sector initiatives to stimulate new hotel
development and the renovation of existing smaller hotels located in the area. Of particular
importance, the City has formulated an incentive package to attract private development
interests to develop a new convention headquarters hotel.
-A
\HI
i .
1'.A`:I1.1:-1`..,( (, ,(
Ms. Judith M. Ford
- 2 -
June 2, 1993
At this 'uncture, it is our understanding that the City of Miami Beach wishes to prepare a
Y 9-
hi hualit "package target a to tar et creditable and viable development interest and to solicit
g
proposalsdevelopment for the develo ment of one or more convention headquarters hotels". Arthur
Andersen's Real Estate and Hospitality Services practices has directly relevant experience
and the extensive capabilities to provide the City of Miami Beach all the requisite services.
Specifically, our Firm offers the City of Miami Beach the following:
1. Indepth Market Knowledge and Experience.
Arthur Andersen has indepth experience in the market, development, financing
and operations of hotels in the greater Miami area; we have conducted several
engagements involving hotel market potentials for new hotel properties on
Miami Beach in recent months.
Nationally and internationally, Arthur Andersen is the leader in hospitality and
real estate advisory services. We provide audit and operational consulting
services to many of the largest hotel owners and operating companies in the
world. We have strong experience in evaluating and assisting in the structuring
of development ventures for new hotels and other commercial properties.
Our clients are both public and private entities. Our experience is balanced
between advising and representing both sides of a transaction.
2. Close Coordination And Timely Execution.
A hallmark of our Firm is a full service commitment to each client. Our
approach to this type of engagement is both process oriented and work
product specific.
The engagement would be managed from our Miami office. We propose a
project management plan which provides for regular progress reviews and
coordination with the City throughout the engagement.
\it I I I;
N I
\,,,viii
`I
Ms. Judith M. Ford
- 3 -
June 2, 1993
3. Seasoned Professional Staff
We are prepared to commit senior, highly experienced professional staff to the
conduct of this engagement. In this regard, the project would be co-managed
by two senior Principals to provide ongoing and complete coverage throughout
the duration of the engagement. In addition, senior advisory member of our
real estate and hospitality service practices will be available throughout the
engagement.
The balance of our complete proposal accompanies this letter and is divided into the
following separate sections:
• Scope of Services;
• Project Management/Coordination;
• Capability and Experience; and
• Fee Proposal.
In addition, we have included in our proposal the completed form pursuant to Section
287.133 (3)(a), Florida Statues on Public Entity Crimes. This completed form follows this
letter.
We are enthusiastic regarding this opportunity to serve the City of Miami Beach in
successfully attracting a viable development proposal. We look forward to further present
our approach, our qualifications and our experience. Should the City of Miami Beach have
any further questions, please contact either Michael A. Stein or J. Kevin Lawler at (305)
374-3700.
Very truly yours,
/ •
AA:arm
Enclosures
- a
• f
Scope of Services
A consultant team is being solicited that will be able to assist
the City in identifying and selecting a developer which has the
proven experience, financial resources and professional expertise
to deliver the highest quality, economically feasible project. As
such, the scope of will include the following components:
* Review all material, plans and reports prepared concerning the
City Center/Historic Convention Village Redevelopment and
Revitalization Area.
* Review the Request for Proposals and obtain printing services.
* Develop a package to market and promote the City Center concept,
the Request for Proposals and the City's desire to attract new
convention hotel (s) , to the hotel development community worldwide
* Develop a list of qualified developers and franchise
organizations who have the background, resources and desire to
develop convention hotel (s) in Miami Beach. The Consultant will
draw from both internal and external sources to accomplish this
assignment.
* Determine guidelines for developer responses to the Request for
Proposals.
* Develop the selection criteria and ranking matrix to serve as the
basis in the developer selection process.
* Coordinate and participate in the developer interview process.
City of Miami Beach staff will manage the project and provide
direction to the consultants. Input and review in this process
will be sought from the community and members of the Art Deco Hotel
Association, the Miami Beach Hotel Association, the Greater Miami
Convention and Visitors Bureau, the Citizens Advisory and Technical
Committee, the Ocean Drive Association, the Miami Design
Preservation League, the Miami Beach Chamber of Commerce, the Miami
Beach Development Corporation and the Lincoln Road Task Force.
Time Frame
It is anticipated that a consultant will be selected by June 16,
1993 . Once the consultant is selected, it is anticipated that the
assignment will be completed within one year.
RFP NO: 81-92/93
DATE: 5/14/93 CITY OF MIAMI BEACH
3
•
REAL ESTATE ADVISORY SERVICES
SCOPE OF SERVICES
ARTHUR ANDERSEN REAL ESTATE SERVICES GROUP
. 1
•
•
SCOPE OF SERVICES
b'ectives of soliciting of developers and securing viable commitments to
To accomplish the o jg
p
develop
and operate one or more high quality, convention headquarters hotels, we propose
a series of sequential tasks as follows:
Task I- Review And Evaluate Existing Materials.
A
t the outset of the engagement, we would review all materials,
plans or reports prepared to date by or for the City concerning the
p
City
Center/Historic Convention Village Redevelopment and
Revitalization Area". Of particular importance are:
• Market studies and related materials which indicate the nature
and type of the potential opportunity relative to hotel room demand and achievable average daily room rates;
• Financial feasibility analyses and their underlying assumptions
andP arameters with regard to the financial viability of one or
more convention headquarters hotels;
•
Development plans for the area, including public commitments
p
for control of the development sites and investment in
supporting area infrastructure; and
• Proposed incentive package to be provided to developers.
We will review these materials with a view to their suitability and
adequacy uac for summary and presentation to prospective
developer/bidders. During this process, we would identify any
potential deficiencies and review these with the City. If these
'deficiencies are of a nature which would raise substantial
unresolved9 uestions or risks to a potential developer/bidder, we
would clearly identifythese areas and request the City address these
either in the context of further studies or other means.
TASK II- Prepare A Ma rketi ngi RFP Prospectus.
Closely coordinating this task with the City, we will prepare a draft
ros
"P P ectus" to solicit developer/bidder interest in the convention
headquarters hotel sites. At the commencement of this task, we
would discuss and review with the City the "prospectus" in terms:
• Content;
• Scope and type of information;
'.2
1 v
.
c Specificity of terms; and
c, Format of presentation.
Once these issues have been addressed, and agreed upon with the
P
P
City, we prepare then are a draft prospectus. The City would
retain control over the final approval of the content, language and
presentation of the package.
Concurrent with preparation of the solicitation package, we would
p
work
with the Cityto identify and prepare supporting, detailed
information which would be provided to prospective
developers/bidders.
TASK III- Prepare A List Of Prospective Bidders.
This task would be divided into several steps. First, we would
a comprehensive listing of potentially qualified developers,
prepare p
investors, hotel operators and/or management companies, and the
iike,
who byvirtue of their background, financial resources and
potential interest in the Miami Beach Convention market would be
Yg
highly qualified targets; this listing would be based on our world-
wide network of clients, interest and capabilities as well as our
industry-wide contacts. Second, we would review with the City
operators,
developers, hotel o franchise organizations and others who
have previouslyexpressed interest in the development, operation
and
ownershipof a convention headquarters hotel on Miami Beach.
We would then combine these lists and carefully review it with the
City for overlap, duplication and the like. Lastly, we would
undertake a final review using our world-wide network to verify
potential candidates and to assure that the list is all encompassing.
Based on therecedin steps, we would then prepare a final list.
P g
The final list would specifically identify:
• Name of organization; and
• Principal contact and address.
When approved by City,the Ci , this list would form the basis for
distribution of the marketing/RFP prospectus.
During this task, we would also review with the City procedures and
policies for solicitation and procurement of development interests,
including advertisement requirements and similar matters required
under either City codes or State statutes.
":3
r •
•
•
TASK IV
Establish Guidelines For Responses To The Request For Proposal.
In this task we would prepare a set of detail guidelines, consistent
with City policies and industries practices for development of
proposal responses. These guidelines would address such matters
P
as:
• The complete proposing entity, including legal form;
• Demonstration of financial capacity to perform, including any
initial deposits;
Propose business arrangements (e.g., deal terms);
Individual authorized to commit and bind the proposing entity;
o Development concept and level of specificity;
• Propose timetable for proceeding if selected, and any
performance conditions;
• Relevant experience and references; and
• Financial statements.
TASK V- Finalize And Issue The Marketing Package/RFP.
Upon approval the "draft" marketing/RFP prospectus by the City,
P
including in corporation of guidelines for developer responses, we
will finalize the marketing/RFP prospectus.
We would then supervise printing, production and distribution of the
�inarketin FP prospectus to the approved list of qualified
�
developers, investors, hotel/management companies and franchise
g
operators, as agreed upon with the City. The distribution of the
prospectus would be consistent with applicable City and State law or policies governing solicitations of this nature.
TASK VI- Prepare And Finalize Selection Criteria.
Concurrent with the finalization of the RFP, we would prepare an
initial set of selection criteria for review by the City. These selection
criteria would be organized into several components as follows:
• Technical merits of development proposal;
^'
• Strength and development capability of proposing entity;
• Financial capacity to perform; and
Financial terms of the development deal.
After the issuance of the RFP, we would continue to refine the
specificity of criteria with the City as well as responsibilities for
evaluating proposals relative to the established criteria.
TASK VII- Coordinate And Participate In The Proposal Interviews.
Upon receipt of development proposals, we would work with the
p p
Cityto conduct a technical review-and verify all key aspects of the
development proposals in the context of the agreed upon evaluation
criteria established in Task VI. Included in the review would be:
• A financial analysis of the development proposal;
• Verification of financing capacity to perform; and
Verification of credentials/capabilities.
• Upon review of the development proposals, we recommend an
Initial "confidential" ranking be prepared. This ranking would serve
as a basis to formulate key questions and issues to be addressed
during the interviews.
Next, we would coordinate and work with the City to schedule
interviews. We would establish a format, schedule, and outline an
agenda of items to be addressed with each developer, generally, as
well as with specific issues relative to each development proposal.
We would then assist and participate with the City in the interviews.
Based on the interviews, we would then coordinate a final review
and ranking of the development proposals.
The Y P requested uested sco a of work under RFP 81-92/93 did not identify services to be performed
beyond coordinate and participate in the developer interview process." In our experience,
there are several important subsequent steps. These include (1) formal selection of the
developer, (2) negotiaton of a development deal and (3) documentation of business terms.
P �
We are fully prepared provide these services to the City of Miami Beach should these be
upon
required �comple :on of the stated scope of services in RFP 81-92/93.
r
REAL ESTATE ADVISORY SERV:CES. .
PROJECT
MANAGEMENT/COORDINATION
ARTHUR ANDERSEN REAL ESTATE SERVICES GROUP
•T6
•
PROJECT MANAGEMENT/COORDINATION
This section describes our approachto project management, coordination with the City and
scheduling of the work.
Engagement Team
professional propose to commit
senior resources to the conduct of the engagement. In
this regard, the engagement would be co-managed by two senior Principals, Michael A. Stein
and J. Kevin Lawler. In addition, David Heath, Manager, would direct day-to-day staff
activities of the engagement.
The responsibilities and capabilities of the "core" engagement management team are as
follows:
• Michael A. Stein: Michael has over 22 years of experience in
Principal al hospitality and real estate consulting. Michael is
the Miami office and Hospitality and Real Estate
Advisory Practice Director.
Michael would be responsible for client
coordination throughout the duration of the
engagement.
• J. Kevin Lawler: Kevin has 20 years of experience in advising
Principal private al and public clients on development and
venture structures. Kevin divides his time
between the Washington, D.C. and Miami office.
Kevin would be responsible for technical direction
of the engagement.
♦ David Heath: David has 16 years of experience in the
Manager hospitality field. David is the senior Manager in
the Miami office Hospitality and Real Estate
Advisory Practice.
David would have day-to-day responsibility for
staff direction in this assignment.
In addition to the core engagement team, we would draw on senior resources of the Firm.
These include:
• Ivan Faggen, Worldwide Director, Real Estate Services Group;
• Robert Davis, Real Estate Capital Markets; and
• Edward Hess, Real Estate Capital Markets.
Messrs. Faggen, Davis and Hess would be an integral part of the engagement team. They
would provide direction and assistance with regard to the preparation of the list of qualified
developers bidders and review the marketing/RFP package. Furthermore, they
prospective .� � v of develo mens
would be called upon as needed with regard to review and evaluation p
proposals.
Resumes for the core engagement team of Messrs. Stein, Lawler and Heath are
accompanied in this section.
Schedule
We areP repared to commit resources and to move forward on a timely schedule which
permits the City and other interested parties adequate time and review and approve key
materials. Based on our prior experience on similar engagements, we suggest the following
schedule:
TASKS TIMING
TASK I- Review and Evaluate Existing Materials 2-3 Weeks
TASK II- Prepare Daft Marketing/RFP Prospectus
TASK III- Prepare a List of Potential Bidders 4-5 Weeks
TASK IV- Establish Guidelines for Proposal Response
TASK V- Finalize and Issue the Marketing Prospectus/RFP
TASK VI- Prepare and Finalize Selection Criteria 2 Weeks
TASK VII- Coordinate and Participate in Proposal Interviews To Be Determined
r�
Coordination With The City
The outset of the engagement, we would propose to meet with City staff responsible for the
of :he project to establish a specific timetable and a coordination
overall management
process. pp engagements Our approach to of this nature is interactive. In this regard, we
would plan to meet with applicable City staff at the commencement and completion of each
task.
We prothat sufficient time be "built in" to the overall timetable to permit adequate
the Cityand requisite and participation of community members of the Art Deco
reviewby q
Hotel Association, the Miami Beach Hotel Association, the Greater Miami Convention
Visitors Bureau, the Citizens Advisory and Technical Committee, the Ocean Drive
Association, the Miami Design Preservation League, the Miami Beach Chamber of
g
Commerce, the Miami Beach Development Corporation and the Lincoln Road Task Force.
We lookCity to provide to the direction on the responsibility for soliciting input and review
of the interestedorganizations. approach Our a roach to the engagement provides for a Principal
to be involved in up to 10 "input and review meetings" with interested organization and
community groups.
REAL ESTATE ADVISORY•SERVICES
CAPABILITIES AND EXPERIENCE
ARTHUR ANDERSEN REAL ESTATE SERVICES GROUP
0
CAPABILITIES AND EXPERIENCE
Real estate and hotels are two of Arthur Andersen's primary industry concentrations. The
Arthur Andersen's Real Estate Services Group ("RESG") is the largest advisory organization
of its kind. The RESG consists of over 1,200 professional personnel, serving 6000 real
estate clients. Members of RESG have substantial experience in analyzing development
ventures, identifying viable development venture partners and assisting clients in negotiating
development venture agreements for both commercial real estate and major hotels. Client
engagements have been conducted for both private and public entities.
Arthur
Andersen is an industryleader in audit, business advisory and consulting services to
hotels. A representative listing of our clients is as follows:
Hotel Company Audit Clients Hotel Industry Consulting Clients
- Accor (France) - American General Hospitality
- Choice Hotels International (U.S.) - Bacardi Corporation
- Copthorne Hotels (U.K.) - Carnicon Management Associates
- Doubletree Hotels Corporation (U.S.) - The Continental Companies
- Drury Inns, Inc. (U.S.) - Danubius Hotels
- Hilton Hotels Corporation (U.S.) - Embassy Suites
- Hyatt International Hotels (U.S.) - Four Seasons Hotels, Ltd.
- Hoteles Calinda (Mexico) - Guest Quarters Suite Hotels
- Hoteles Melia (Mexico) - Hampton Inn Hotels
- Inter-Continental Hotels Group (U.K.) - Hilton Grand Vacations Company
- International Leisure Group (U.K.) - Holiday Inn Worldwide
- ITT Sheraton Corporation (U.S.) - Hyatt Corporation
- Marriott Corporation (U.S.) - Metro Hotels
- N.H. Group (Spain) - Nations Bank
- Omni Hotels (U.S.) - Paine Webber Properties
- Principal Hotels Group, PLC (U.K.) - Rahn Properties, Inc.
- Promus Companies (U.S.) - The Ritz-Carlton Hotel Company
- Posadas de Mexico (Mexico) - Rosewood Hotels & Resorts
- Radisson Hotels International (U.S.) - Sonesta Hotels
- Ramada International Hotels & Resorts (U.S.) - Vail Associates
- Red Lion Hotels & Inns (U.S.) - Western Europe Hotels, Inc.
- Societes des Bains de Mer (Monaco) - Westin Hotels & Resorts
- Wyndham Hotels & Resorts (U.S.) - Westinghouse Financial Services
�,1
A
J
r
.
Arthur Andersen's RESG
serves manyof the largest developers, owners and investors in
real estate, worldwide. Clients include:
- Aetna Realty Investors, Inc. - Mitsui Taiyo Kobe Bank
- Arico America Real Estate Investment Company - Morrison Knudsen Corp.
- Artery Organization,anization, Inc. The - Mutual Benefit Life Insurance Company, The
- Banco Central Hispanoamer - Nations Bank
- Bankamerica Corporation - Nomura Securities Co., Ltd.
- Beacon Homes Company - Noro Group of Companies, The
- Beal Companies, The - Nouveaux Constructeurs
- BICC P.L.C. - O'Connor J.W.,& Co., Inc.
- Blackman, Flynn & Co. - Orix Real Estate Equities, Inc.
- Boston Financial Group - Pennsylvania Real Estate Investment Trust
- Capital Guidance Corporation - Perini Corporation
- Carlson Companies, Inc. - Posadas De Mexico S.A.De CV
- Carlyle Group, The - Promus Companies, The
- Carter & Associates, Inc. - Resolution Trust Corporation
- Casden Company, The - Robert, J.E.,Company, The
- Ceasers World, Inc. - Rodamco N.V.
- Centex Corporation - Rosehaugh Company PLC
- Circus Circus Hotels, Inc. - Rubloff Real Estate & Capital, Inc.
- Continental Development Corporation - Sade S.A.C.C.I.F.M.
- Cousins Properties, Incorporated - Salomon Inc.
- CRI, Inc, - Security Properties, Inc.
- Deutsche Bank AG - Seibu Urban Development Corporation
- Draper and Kramer Incorporated - Shidler & Co.
- Eastern Realty Investment Corporation - Sierra Real Estate Equity Trust
- Equitable Real Estate Investment Mgmt.,Inc. - Societe Auxiliaire D'Enterprises
- Federated Development Company - Spaulding and Slye Corporation
- First Boston, Inc. - Spie Batignolles
- First Interstate Bancorp - Standard Trust
- Ford Motor Company - Standard-Pacific Corp.
- General Electric Compa:.y - Synco, Inc.
- General Homes Corporation - Takenaka Engineering And Construction
- Glenborough Corporation - Takenaka Komuten Co.,Ltd.
- Golf Hosts International - Tishman Speyer Crown Equities
- Great American Management And Investment - Trammel Crow
- Grubb And Ellis Company - Trammel Crow Ventures
- Hall Real Estate Corporation - Transmanche Link
- Hancock John Properties, Inc. - Trump's Castle
- Hancock, John, Mutual Life Insurance Company - Trump's Plaza
- Heartland Group, Inc. - Trump Taj Mahal
- Hines, Gerald D., Interests - Turner Corporation
- Interstate General Corporation - U.S. Home Corporation
- Kajima Engineer & Construction - Union Bank of California
- Koll-Wells - US West Realty
- Kranzco Realty Trust, Inc. - Weyerhaeuser Company
- Kumagai Gumi Co., LTD - Wilma International
- Lee, Yau, Construction Co., Ltd. - Winthrop Financial Co.,Inc.
- Lehndorff Vermogensverwaltung GMBH - Wyndham Hotels And Resorts
- Lincoln Property Company - Zyeckendorf Company, The
1
13 2
Relevant Experience
On behalf of both pua�ic private and clients, we have undertaken the following directly
relevant engagements:
♦ Unlon Station Redevelopment Corporation - Washington, D.C.
Over a several year period, we analyzed the redevelopment potential of this
' ' historicproperty, formulated the development program, assisted the
significant
client in securing necessary financial commitments, organized and managed
the nonprofit developmentcorporation,co oration, prepared development RFP's,
solicited developer velo proposals and negotiated with and on behalf of a joint
venture for the redevelopment of this property.
Contact: Keith Kelly
Executive Director
Union Station Redevelopment Corporation
(202) 906-4130
• Architect of the Capital - Washington, D.C.
On be.Ni..F of this client, we assisted in defining a development program for
a major mixed use buildingon a highly prominent Federal site and organized
and ma..
-a ed the development process, including preparation of a developer
g P
RFP's, reviewdevelopment of develo ment P roposals and selection and negotiation of
development proposals and financing for a 550,000 square foot mixed use
building.
Contact: George M. White
FAIA
Architect of the Capital
(202) 225-1200
• Convention Center Hotel - San Diego, CA
Over a 3 1/2year period, we assisted and advised this client in a development
program and financial packaging of a development of a 1,000 room
headquarters hotel to-be-built in conjunction with a new convention center.
Our work encompassed evaluating alterative development proposals,
`in a financial public investment package and negotiation of
formu.d� g
development deal terms with a major hotel developer.
'
Contact: Gerald M. Trimble,
Former Executive Director
Centre City Development Corporation
(619) 942-0380
' 3
' l
• Bell Atlantic Corporation - Metropolitan, Washington
worked on an ongoing basis for this owner of
Over the past 6 years, we have o g .
for of excess property in formulating joint venture
a substantial inventory .
major properties. In each of these, we have
development projects forP P 't identified
prepared
initial market and financial evaluations of the opportunity,
potential developer candidates,andidatesspecified initial development deal terms,
P
prepared requestproposals for and evaluated proposal responses.. Based on
these, we have assisted this client in negotiating development ventures on
several of these properties.
Contact: Steven Masterman
Manager of Real Estate
(703) 974-6048
• Champion Realty Corporation - Flemming Island, Florida Property
• a strategyfor the development of a substantial
We assisted this client in
parcel of land, including an appropriate deal structure which balanced the
� objectives with traditional real estate financial
corporation's financial • ' and targeted
reared solicitation materials, identified g
structures. We then prepared in selecting and preferred
developerproposals assisted a
developers, reviewedassisted arid
thepreferred developer was selected, we
developer. Once venture for the
the client in negotiating supported a long-term development
property.
Contact: Roland Diaz
President
(713) 874-1700
• serve as their development advisor on the
have recentlybeen retained by Skopbank to
We
' downtown Brussels, Belgium, including solicitation
redevelopment of the Martini Tower in similar
arran arrangement for the property. We have undertaken
and negotiation of a developerg Consumer Electronics,
such as clients as DataPoint Corporation, Thompson
engagements for
the Downtown Anchorage Development Corporation, and Lakeland Florida Downtown
Development Authority.
Related Experience
• workingwith existing owners, operators and
The significant part of our practice involves in
g
estate projects. In this regard, we are regularly involved
developers of major real propernes and
developing business
and financial strategies for existing and to-be-builtp P
• identified in the scope of work under our RFP 81-92/93.
performing many of the services identified . P .
p g hotel assignments include.
A representative listing of these relatedg
34
• Williams Hospitality - Puerto Rico
• Juan, El Conquistador and the Condado
We advised the owners of El San9
type of franchise best suited for the project given
Plaza in deciding as to the also, assisted in
companies coming to the
the advent of new hotel island. We p
the negotiations with the various hotel companies.
• Hyatt Regency - Miami to obtain
We prepared an investment package on this property in order
funding through European banks and additional equity partners.
g uro P
• Hyatt Regency - St. John P
We worked with Hyatt Hotels
with Skopbank in the selection and negotiation y
for the operation of this resort facility.
• The Colonnade Hotel - Coral Gables
buyers in the negotiation and extension of a management
We assisted the g strategyfor the
contract on this property and in determining the best
investment in terms of cost allocations and price structure.
• Biltmore Hotel - Coral Gables package
the Ci of Coral Gables in reviewing the investor p g
e
We worked with ty
prepared by the current operators.
• Omni Hotel - Miami plan for
We advised the lender as to the management contract and a strategic
the property.
• Sheraton Hotel - Miami
insurance company to determine the best flag to place
We worked with the p r would need
on this
hotel and determine what amenity package the property
in order to strengthen its market position.
Miami International Airport Hotel - Miami
• Countyin reviewing the
with the government of Dade
Worked together
operator packages for this property.
• The Ritz Plaza - Miami Beach the cash
• to the best operating structure to improve
We advised the owners as P
flow, and methods to reposition this property.
J
• The Mayfair Hotel - Coconut Grove
We advised the lender on the selection of a hotel operator and the
negotiations of the management contract. We also assisted the owner in the
g
operation of this facility for a period of 2 1/2 years.
A directlyrelated area of ourpractice involves the preparation of investment packages for
owners. Recent representative assignments involving hotel investment packages prepared
p
by our real capital markets practice include:
- The Kilroy Airport Center - California
- Rancho Bernardo Inn - California
- Jumby Bay Hotel - Antigua
- La Jolla Hotel - California
- La Jolla/Collins Companies
- 100 Park Avenue - New York City
- Le Meridien Hotel - New York City
- Hyatt Regency Maui and Waikiki
36
REAL E;si ATE AIA'ISoRY SFRv'ICES
•
MICHAEL A. STEIN
Principal
Andersen & Co., Real Estate Services Group, has been
Mr. Stein, a principal with Arthur time, he
real estate industryfor the past 25 years. During this
part of the hospitality/resort al and
management andplanning of projects on a nation
has been involved in the
international scale. Some of his areas of specialization include operation and system reviews,
assistance to on-site management
contract negotiations, in projections,
economic property ventures,ro er evaluation and appraisals of existing business en ,
tourism, fiscal and
• addition, he has been involved in a number of transaction-
relatedeconomic impact analysis. In additi have
including workouts for under-performing assets. His activitieslatest•
activities, Inc g
includedsix properties in the Southeastern United States for
the asset management of p p
owners and/or financial institutions.
in the United States and is recognized by his
He has conducted hundreds of engagements has
it resort real estate consulting industry. Mr. Stein
peers as a leader in the hospitals y/
a number hotel litigation cases. He has published numerous
served as an expert witness in g international
to act as keynote articles and has been invited speaker at many national and intern
conferences.
Societyof Hotelmen, The Board of Directors of the
Mr. Stein is a member of the Cornell
• Association, AdvisoryBoard Member of the Four Seasons
Greater Miami Hotel ;� Motel
arks Missouri. He is also strongly involved in community
Hotel, Lake of the Cz ,
organizations in the Greater Miami area.
' Southern Mississippi receiving his Bachelor of Science
Mr. Stein attended the University of PP
his studies at Cornell University where he received a second
degree in 1968. He continued Yale
ion. He attended the University of Miami (1976) and
degree in Hotel Administration.complete work in accounting, finance, and advance management.
to g
University (1989)
enhanced
Furthermore, his education has beenby over 1000 hours of professional
development courses.
ARTHUR ANDERSEN REAL ESTATE SERVICES GROUP
.gyp J A�
REAL EST.A FE ADVISOR\ SER`'lCES
J. KEVIN LAWLER
Principal
Mr. Lawler joined Arthur Andersen in 1973. He has directed a variety of assignments
involving the application of market and financial analysis to solve development-related issues
and to structure real estate investment/financing opportunities for private and public clients.
Mr. Lawler is active in advising clients in the ownership, investment, financing and
development of major real estate projects and assets. He recently completed a financial
p �
evaluation of a portfolio of 10 high profile downtown Washington, D.C. commercial office
building for a to be formed R.E.I,T. and advised Deutsche Bank Realty Advisors on the
strategic positioning of a portfolio of 12 major properties amounting to over 9.0 million '
g
square feet of office and retail space and in excess of $1.2 billion in current value. Mr.
Lawler recently completed for GTE Realty Corporation a strategic framework for their
ownership interest in a major commercial mixed-use project in downtown Tampa and serves
as the asset manager advisor on this property. Additionally, Mr. Lawler is currently
completing an evaluation of a portfolio of 33 apartment properties with 13,000 units for a
securitized financing transaction and is advising Dade County Aviation Department on the
potential acquisition of the Miami Free Trade Zone and additional properties.
Mr. Lawler is currently advising the International Monetary Fund and the National Rural
Electric Cooperative Association on the acquisition/ development of a new headquarters
and assisting Bell Atlantic on a development venture for a major office building. He has
recentlycompleted assignments for Thomson Consumer Electronics, American Psychological
Association, the International Union of Bricklayers and Allied Craftsmen, the National
Academy of Sciences, the Paralyzed Veterans of America, American Red Cross,
Communication Workers of America, International Food Processors, the National
Geographic Society, BASF Corporation; all these assignments have involved advising and
representing these clients in the negotiation of leases, joint ventures and the purchase of
commercial office buildings. He has been active in advising substantial landowners and
developers throughout the Washington, D.C. Metropolitan Area, as well as Northern New
Jersey, suburban Baltimore, and Tampa/St. Petersburg, Palm Beach, Ft. Lauderdale and
Miami, Florida on commercial development.
Mr. Lawler has extensive experience in all facets of large scale land development. He has
advised a Japanese financial organization in the acquisition of several large hotel and resort
development properties. He has been deeply involved in analyzing potentials and the
strategic structure of development programs and financial feasibility of multi-year, multi-use
development projects in Tampa, Orlando, Ft. Myers/Cape Coral and West Palm Beach,
Florida; Northern New Jersey; the Washington and Baltimore corridors and Southern
California in recent years. These assignments have involved substantial land holdings to-be-
developed with mixed residential densities and related amenities, commercial office,
community and regional shopping centers, and hotel uses.
ARTHUR ANDERSEN REAL ESTATE SERVICES GROUP
. a
REAL ESTATE ADVISORY SERVICES
Lawler has served as an advisor to both public agencies and private interest int e
Mr. • • as the real estate
formation of"public-private" development ventures. Specifically, he served
v ment of a 1 000
to San Diego's Centre Citydevelopment advisor Development Corporation on the de
room hotel conjunction conunction with a new convention center. He has also advised the
Municipality of Anchorage,chora e Alaska, the Downtown Development Authority of Lakeland and
Tampa, Florida
and the Cityof Hoboken, NJ on major commercial development projects.
ForP developers,develo ers, :ie has been actively involved in analyzing and structuring real estate development ventures ,nvolving public participation.
Mr. Lawler holds a B.S. from Michigan State University and a Masters of City Planning from
Harvard University. He served as an advisor to the National Trust for Historic Preservation,
representing
the District of Columbia between 1977 and 1980. He was a graduate instructor
in Land Economics and Real Estate Investment Analysis at George Washington University
for several yea taught Mr. Lawler recentlytau ht an advanced real estate investment and finance
Maryland.through
the Universityof Ma land. He has lectured extensively on real estate
development and finance at Wharton School (University of Pennsylvania), Harvard Business
School and Georgetown University.
Mr. Lawler is a member of the Urban Land Institute.
ARTHUR ANDERSEN REAL ESTATE SERVICES GROUP
39
• REM. ESTATE ADVISORY Sr:10,ICES,
DAVID W. HEATH
Manager
withArthur Andersen & Co's Real Estate Services Group,
David Heath, a Manager Mr.
development consulting services for the real estate industry.
provides operational and p experience
extensive hospitality management background; his consulting ex p
Heath has an P
udes operational consulting as we it as market and financial analysis sis for hotels,
Incl p
restaurants, airports and planned commlnities.
Among Mr. Heath's areas of specialization include the following:
• Strategic
planning, market repositioning and workouts for
distressed hotels and resorts;
• Development planning, market evaluation and financial analysis
p g
for hotel, resort, casino and planned community developments;
and
• Analysis of f o erational effectiveness with a view toward
improving overallprofitability the of hotels, resorts and privateclubs, through h innovative marketing, enhanced internal controls
and labor productivity management.
At the outset of his career, Mr. Heath worked for more than ten years in various
management capacities in hotel and restaurant operations with, among other companies,
n Hotel Company. Prior to joining Arthur Andersen, Mr.
Hyatt Hotels and the Ritz-Carlton &
Florida hospitality operational consulting practice of Laventhol
Heath supervised the p Y P
numerous consulting Horvath and directed engagements in Florida and the Caribbean.
of Massachusetts at Amherst, receiving his Bachelor of
Mr. Heath attended the University
Science (Cum Laude) in Hotel
Administration with election to the Eta Sigma Delta National
• continued his education byattending Northeastern University
Honor Society in 1980. He
in
Master of Business Administration programin1989.Boston, completing the Mr. Heathleis and
continuing education seminars on Internal Controls for Ho
currently conducts con 8
Restaurants for the American Institute of Certified Public Accountants. Mr. Heath has also
p
of New Ham shire, the University of Massachusetts, and for
guest lectured at the University
the Florida Restaurant Association.
1
ARTHUR ANDERSEN REAL ESTATE SERVICES GROUP
10
RFAl. ESTATE , t)'ISORt' SFR\,.t'FS
FEE PROPOSAL *
* The fee structure is presented in the original proposal only.
ARTHUR ANDERSEN REAL ESTATE SERVICES GROUP
11
R FAI, ESTA"t E iSORY Sr.:RV ICES
w •
PUBLIC ENTITY CRIMES, SWORN STATEMENTS
ARTHUR ANDERSEN REAL ESTATE SERVICES GROUP
1')
Y0'
SWORN S1AIL) M1 PURSUAN1 1U SLLI1UN
. r FLORIDA STATUTES, ON PUBLIC ENTITY CRIMES < •
THIS FORM MUST BE SIGNED AND SWORN TO IN THE PRESENCE Of A NOTARY PUBLIC OR OTHER OFFICIAL AUTHORIZED Ta`
4 ADMINISTER OATHS.
1. This sworn statement is submitted to City of M i am L gipcja
by Michael A. Stein
(print individual's name and title)
for Arthur Andeiseu & Co .
(print name of entity submitting sworn statement)
whose business address is One Biscayne Tower , Suite 2100
Miami. F l n r i d&_3_____B_1
and (if applicable) its Federal Employer Identification Number (FEIN) is 36-0732690
(If the entity has no FEIN, include the Social Security Number of the individual signing this sworn
statement: .)
2. I understand that a "public entity crime" as defined in Paragraph 287.133(1)(g), florida Statutes.
means a violation of any state or federal law by a person with respect to and directly related to the
transaction of business with any public entity or with an agency or political subdivision of any other .
state or of the United States, including, but not limited to, any bid or contract for goods or services
to be provided to any public entity or an agency or political subdivision of any other state or of the
United States and involving antitrust, fraud, theft, bribery, collusion, racketeering, conspiracy, or
material misrepresentation.
3. I understand that "convicted" or "conviction" as defined in Paragraph 287.133(1)(b), Florida Statutes,
means a finding of guilt or a conviction of a public entity crime, with or without an adjudication of
guilt, in any federal or state trial court of record relating to charges brought by indictment or
information after July 1, 1989, as a result of a jury verdict, non-jury trial, or entry of a plea of
guilty or nolo contendere.
4. I understand that an "a:filiate" as defined in Paragraph 287.133(1)(a), Florida Statutes, means:
1. A predecessor or successor of a person convicted of a public entity crime; or
2. An entity under the control of any natural person who is active in the management of the entity and
who has been convicted of a public entity crime. The term "affiliate" includes those officers,
directors, executives, partners, shareholders, employees, members, and agents who are Active in the
management of an affiliate. The ownership by one person of shares constituting a controlling interest
in another person, or a pooling of equipment or income among persons when not for fair market value
under an arm's length agreement, shall be a prima facie case that one person controls another person.
A person who knowingly enters into a joint venture with a person who has been convicted of a public
entity crime in Florida during the preceding 36 months shall be considered an affiliate.
5. I understand that a "person" as defined in Paragraph 287.133(1)(e), Florida Statutes, means any natural
person or entity organized under the laws of any state or of the United States with the legal power to
enter into a binding contract and which bids or applies to bid on contracts for the provision of goods
or services let by a public entity, or which otherwise transacts or applies to transact business with
a public entity. The term "person" includes those officers, directors, executives, partners,
shareholders, employees, members, and agents who are active in management of an entity.
6. Based on information and belief, the statement which I have marked is true in relation to the entity
submitting this sworn statement. (indicate which statement applies.)
X Neither the entity submitting this sworn statement, nor any of its officers, directors,
executives, partners, shareholders, employees, members, or agents who are active in the
management of the entity, nor any affiliate of the entity have been charged with and convicted
of a public entity crime subsequent to July 1, 1989.
_ The entity submitting this sworn statement, or one or more of the officers, directors,
executives, partners, shareholders, employees, members, or agents who are active in the
management of the entity, or an affiliate of the entity has been charged with and convicted
of a public entity crime subsequent to July 1, 1989.
RFP NO: 81-92/93
DATE: 5/14/93 CITY OF MIAMI BEACH
8
13
4 • executives, partners, shareholders, employees ,r ;r,er Jr dycr►c', •IW d,_ _
management of the entity, or an affiliate of the entity has been charged with and convfcted
of a public entity crime subsequent to July 1, 1989. However, there has been a subsequent
proceeding before a Hearing Officer of the State of Florida, Division of Administrative
'' Hearings and the Final Order entered by the Hearing Officer determined that it was not in the
public interest to place the entity submitting this sworn statement on the convicted vendor
list. (attach a copy of the final order)
I UNDERSTAND THAT THE SUBMISSION OF THIS FORM TO THE CONTRACTING OFFICER FOR THE PUBLIC ENTITY IDENTIFIED IN
PARAGRAPH 1 (ONE) ABOVE IS FOR THAT PUBLIC ENTITY ONLY AND, THAT THIS FORM IS VALID THROUGH DECEMBER 31 OF THE
CALENDAR YEAR IN VHICH IT IS FILED. I ALSO UNDERSTAND THAT I AM REQUIRED TO INFORM THE PUBLIC ENTITY PRIOR TO
ENTERING INTO A CONTRACT IN EXCESS OF THE THRESHOLD AMOUNT PROVIDED IN SECTION 287.017, FLORIDA STA TE1 FOR
CATEGORY TWO OF AMY CHANGE IN THE INFORMATION CONTAINED IN THIS FORM.
id-6(114(e/e4-x—
(Signature)
June 2 , 1993
(date)
STATE OF Florida
COUNTY OF Dade
PERSONALLY APPEARED BEFORE ME, the undersigned authority,
Michael A . Stein , who, after first being sworn by me, affixed his/her signature
in the space provided above on this 2nd day of June , 19 9 1.
• /
A 11/4
0 RY •UBLI
My Commission Expires:
mar 0/, oc/KSAL NOTARY URAL
o �', •YRIA• • M*1*T1NU
T CO.Wss1O4 'wenn
us CC142S44
�i� cpo wv GoesisatOM ear.
OF f%.° DEC. •1SSE
FORM PUR 7068 (Rev. 06/05/91)
RFP NO: 81-92/93
DATE: 5/14/93 CITY OF MIAMI BEACH
9
Ii
APPENDIX B
To the Selection Committee:
FEE PROPOSAL
our fee proposal is based on an estimated level of effort and the time commitment of
mostly senior professional staff as described in the scope of work.
STEPS FEE
Step I - $50,000
• Review and Evaluate Existing Materials
• Prepare Draft Marketing/RFP Prospectus
• Prepare a List of Potential Bidders
• Establish Guidelines for Proposal Response
• Finalize the Marketing Prospectus/RFP
• Attend and participate in community/interested party meetings
• Conduct three developer conferences (3 days to be jointly set by the
consultants and City Management)
• Develop and finalize selection criteria
Step II - $10,000
Per proposal meeting criteria
• Receive and review all proposals for satisfaction of criteria
• Coordinate and participate in proposal interviews
• Provide the City with a summary of all proposals together
with our recommendations and conclusions
Step III -
• Assist the City in the negotiations with the finalists:
•• Contract for the first hotel $50,000
•• Contract for the second and any additional hotels $25,000 each
Note: Payment for Step III will be received when the City Commission approves
the hotel contract(s). Should the City Manager recommend a contract and
same is declined by the City Commission, the consultant should be entitled
to the corresponding fee based upon professional time expended, not to
exceed the stated amounts.
In addition to our fees we will bill for direct expenses for transportation, long distance
telephone charges,faxes,reproduction,per diems,etc.to be billed at cost and subject to prior
approval by the City Manager.
We understand that the printing production and distribution of all Developer RFP's will be
performed by the City. Should the decision be made for Arthur Andersen & Co. to perform
this task, we will bill at actual cost.
Our hourly rates for Phase III are:
Partner/Principal- $280-$320 per hr.
Manager - $150 per hr.
• APPENDIX C
•
SCOPE OF SERVICES
' solicitingof developers and securing viable commitments to
Td accomplish the objectives of
develop and operate one or more high quality, convention headquarters hotels, we propose
a series of sequential tasks as follows:
Task I.
Review And Evaluate Existing Materials.
would review all materials,
engagement, we
At the outset of the preparedconcerningthe
or reports todateby
plansor for the City"City Redevelopment and
Center/Historic Convention Village
Revitalization Area". Of particular importance are:
•
• Market studies and related materials which indicate the nature
and type of the potential opportunity relative to hotel room
demand and achievable average daily room rates;
• Financial analyses feasibilityanal ses and their underlying assumptions
iab ty
' iii of one or
and parameters with regard to the financial v
more convention headquarters hotels;
• Development plans for the area, including public commitments
for control of the development sites and. investment in
supporting area infrastructure; and
p
•
Proposed incentive package to be provided to developers.
We will review these materials with a view to their suitability and
ie
adequacy for summary and presentation to prospective
Duringthis process, we would identify any
developer/bidders.
potential deficiencies and review these with the City. If these
deficiencies
are of a nature which would raise substantial
unresolvedquestions uestions or risks to a potential developer/bidder, we
would clearly identifythese areas and request the City address these
either in the context of further studies or other means.
TASK II- Prepare A Marketing/RFP Prospectus.
el coordinatingthis task with the City, we will prepare a draft
Closely
"prospectus"ectus to solicit developer/bidder interest in the convention
headquarters uarters hotel sites. At the commencement of this task, we
would discuss and review with the City the "prospectus" in terms:
• Content;
• Scope and type of information; .
I I ti a
• Specificity of terms; and
ir
• Format of presentation.
Once these issues have been addressed, and agreed upon with the
P
P
City, we prepare then are a draft prospectus. The City would
retain control over the final approval of the content, language and
presentation of the package.
Concurrent with preparation of the solicitation package, we would
P
work with the Cityto identify and prepare supporting, detailed
information which would be provided to prospective
developers/bidders.
TASK 1II- Prepare A List Of Prospective Bidders.
This
task would be divided into several steps. First, we would
Pre comprehensive listing of potentially qualified developers,
Pare a
investors, hotel o erators and/or management companies, and the
P
like, who byvirtue of their background, financial resources and
potential interest in the Miami Beach Convention market would be
highly qualified targets; this listing would be based on our world-
wide network of clients, interest and capabilities as well as our
t -wide contacts. Second, we would
industry-wide review with the City
developers, hotel operators, franchise organizations and others who
haveP reviously expressed interest in the development, operation
and ownershipof a convention headquarters hotel on Miami Beach.
We would then combine these lists and carefully review it with the
P
p
City
for overlap, duplication and the like. Lastly, we would
undertake a final review using our world-wide network to verify
potential candidates and to assure that the list is all encompassing.
Based on the precedingsteps, we would then prepare a final list.
The final list would specifically identify:
• Name of organization; and
• Principal contact and address.
When approvedby the City, this list would form the basis for
distribution of the marketing/RFP prospectus.
During
this task, we would also review with the City procedures and
policies for solicitation and procurement of development interests,
including
advertisement requirements and similar matters required
under either City codes or State statutes.
TASK IV- Establish Guidelines For Responses To The Request For Proposal.
In this task we would prepare a set of detail guidelines, consistent
with City policies and industries practices for development of
proposal responses. These guidelines would address such matters
as:
• The complete proposing entity, including legal form;
• Demonstration of financial capacity to perform, including any
initial deposits;
• Propose business arrangements (e.g., deal terms);
• Individual authorized to commit and bind the proposing entity;
• Development concept and level of specificity;
• Propose timetable for proceeding if selected, and any
performance conditions;
• Relevant experience and references; and
• Financial statements.
TASK V- Finalize And Issue The Marketing Package/RFP.
Upon approval the "draft" marketing/RFP prospectus by the City,
including in corporation of guidelines for developer responses, we
will finalize the marketing/RFP prospectus.
We would then supervise printing, production and distribution of the
marketing/RFP prospectus to the approved list of qualified
developers, investors, hotel/management companies and franchise
operators, as agreed upon with the City. The distribution of the
prospectus would be consistent with applicable City and State law or
policies governing solicitations of this nature.
TASK V74. Prepare And Finalize Selection Criteria.
Concurrent with the finalization of the RFP, we wouldre are an
P P
initial set of selection criteria for review by the City. These selection
criteria would be organized into several components as follows:
• Technical merits of development proposal;
• Y I
•
• Strength and development capability of proposing entity;
• Financial capacity to perform; and
• Financial terms of the development deal.
After the issuance of the RFP, we would continue to refine the
specificity of criteria with the City as well as responsibilities for
P Y
evaluating proposals relative to the established criteria.
TASK VII- Coordinate And Participate In The Proposal Interviews.
Upon receipt of development proposals, we would work with the
P P
City to conduct a technical review and verify all key aspects of the
development proposals in the context of the agreed upon evaluation
criteria established in Task VI. Included in the review would be:
• A financial analysis of the development proposal;
• Verification of financing capacity to perform; and
• Verification of credentials/capabilities.
Upon review of the development proposals, we recommend an
initial "confidential" ranking be prepared. This ranking would serve
as a basis to formulate key questions and issues to be addressed
during the interviews.
Next, we would coordinate and work with the City to schedule
interviews. We would establish a format, schedule, and outline an
agenda of items to be addressed with each developer, generally, as
well as with specific issues relative to each development proposal.
We would then assist and participate with the City in the interviews.
Based on the interviews, we would then coordinate a final review
and ranking of the development proposals.
The requested scope a of work under RFP 81-92/93 did not identify services to be performed
P
beyond "coordinate and participate in the developer interview process." In our experience,
there are several important subsequent steps. These include (1) formal selection of the
developer, (2) negotiation of a development deal and (3) documentation of business terms.
We are fully prep
ared to provide these services to the City of Miami Beach should these be
upon required u on completion of the stated scope of services in RFP 81-92/93.
ORIGINAL
RESOLUTION NO. 93-20853
...x.:_horizing the Mayor and City Clerk to
cuted a professional services agreement
'ith Arthur Andersen, and Company, SC.
REAL ESTATE ADVISORY SERVICES
SCOPE OF SERVICES PROPOSAL
CONVENTION HOTEL DEVELOPER SOLICITATION
Request for Proposal No. S1-92/93
Submitted to:
City of Miami Beach
Florida
June 2, 1993
Prepared By
ARTIIUR ANDERSEN
Arthur Andersen & Co, SC
ARTHUR ANDERSEN REAL ESTATE SERVICES GROUP
REAL ESTATE ADVISORY SERVICES
TRANSMITTAL LETTER
ARTHUR ANDERSEN REAL ESTATE SERVICES GROUP
. .
ARTHUR
, .
ANDERSEN
ARTHUR ANDERSEN&CO, SC
June 2 1993 Arthur Andersen&Co.
Ms. Judith M. Ford Suite 2100
One Biscayne Tower
Purchasing Agent Miami FL 33131-1801
305 789 2578
Office of the Purchasing Agent 305 789 2573 Fax
City of Miami Beach
1700 Convention Drive
Miami Beach, FL 33139
Re: Request for Proposals No. 81-92/93
Convention Hotel Developer Solicitation
Dear Ms. Ford:
Arthur Andersen's Real Estate Services Group is pleased to submit this proposal to provide
advisory services for the solicitation of development proposal for a convention headquarters
hotel. This proposal is submitted with (1) original and (10) copies pursuant to the
guidelines of Request for Proposal No. 81-92/93.
It is our understanding that the City of Miami Beach has expended considerable time and
resources to formulate plans for the development of one or more convention "headquarters"
hotels on sites proximate to the Miami Beach Convention Center. This effort is embodied
in the "City-Center" Master Plan for the Miami Beach Convention Center Area, including
the Historic Convention Village Redevelopment Plan. These plans, as we understand it,
seek to attract one or more convention headquarters hotel properties to be developed with
physical linkages to the convention center and to stimulate the renovation of many of the
smaller historic hotels located in the area.
As we understand it, as part of the planning efforts to date, the City has actively considered
and established parameters for public and private sector initiatives to stimulate new hotel
development and the renovation of existing smaller hotels located in the area. Of particular
importance, the City has formulated an incentive package to attract private development
interests to develop a new convention headquarters hotel.
ARTHUR
ANDERSEN
ARTHUR ANDERSEN&CO,SC
Ms. Judith M. Ford
- 2 -
June 2, 1993
At this juncture, it is our understanding that the City of Miami Beach wishes to prepare a
high-quality "package to target creditable and viable development interest and to solicit
proposals for the development of one or more convention headquarters hotels". Arthur
Andersen's Real Estate and Hospitality Services practices has directly relevant experience
and the extensive capabilities to provide the City of Miami Beach all the requisite services.
Specifically, our Firm offers the City of Miami Beach the following:
1. Indepth Market Knowledge and Experience.
Arthur Andersen has indepth experience in the market, development, financing
and operations of hotels in the greater Miami area; we have conducted several
engagements involving hotel market potentials for new hotel properties on
Miami Beach in recent months.
Nationally and internationally, Arthur Andersen is the leader in hospitality and
real estate advisory services. We provide audit and operational consulting
services to many of the largest hotel owners and operating companies in the
world. We have strong experience in evaluating and assisting in the structuring
of development ventures for new hotels and other commercial properties.
Our clients are both public and private entities. Our experience is balanced
between advising and representing both sides of a transaction.
2. Close Coordination And Timely Execution.
A hallmark of our Firm is a full service commitment to each client. Our
approach to this type of engagement is both process oriented and work
product specific.
The engagement would be managed from our Miami office. We propose a
project management plan which provides for regular progress reviews and
coordination with the City throughout the engagement.
ARTHUR
ANDERSEN
ARTHUR ANDERSEN 6z CO SC
Ms. Judith M. Ford
- 3 -
June 2, 1993
3. Seasoned Professional Staff
We are prepared to commit senior, highly experienced professional staff to the
conduct of this engagement. In this regard, the project would be co-managed
by two senior Principals to provide ongoing and complete coverage throughout
the duration of the engagement. In addition, senior advisory member of our
real estate and hospitality service practices will be available throughout the
engagement.
The balance of our complete proposal accompanies this letter and is divided into the
following separate sections:
• Scope of Services;
• Project Management/Coordination;
• Capability and Experience; and
• Fee Proposal.
In addition, we have included in our proposal the completed form pursuant to Section
287.133 (3)(a), Florida Statues on Public Entity Crimes. This completed form follows this
letter.
We are enthusiastic regarding this opportunity to serve the City of Miami Beach in
successfully attracting a viable development proposal. We look forward to further present
our approach, our qualifications and our experience. Should the City of Miami Beach have
any further questions, please contact either Michael A. Stein or J. Kevin Lawler at (305)
374-3700.
Very truly yours,
67/t't&Z-- / •
AA:arm
Enclosures
Scope of Services
A consultant team is being solicited that will be able to assist
the City in identifying and selecting a developer which has the
proven experience, financial resources and professional expertise
to deliver the highest quality, economically feasible project.. As
such, the scope of will include the following components:
* Review all material, plans and reports prepared concerning the
City Center/Historic Convention Village Redevelopment and
Revitalization Area.
* Review the Request for Proposals and obtain printing services.
* Develop a package to market and promote the City Center concept,
the Request for Proposals and the City's desire to attract new
convention hotel (s) , to the hotel development community worldwide
* Develop a list of qualified developers and franchise
organizations who have the background, resources and desire to
develop convention hotel (s) in Miami Beach. The Consultant will
draw from both internal and external sources to accomplish this
assignment.
* Determine guidelines for developer responses to the Request for
Proposals.
* Develop the selection criteria and ranking matrix to serve as the
basis in the developer selection process.
* Coordinate and participate in the developer interview process.
City of Miami Beach staff will manage the project and provide
direction to the consultants. Input and review in this process
will be sought from the community and members of the Art Deco Hotel
Association, the Miami Beach Hotel Association, the Greater Miami
Convention and Visitors Bureau, the Citizens Advisory and Technical
Committee, the Ocean Drive Association, the Miami Design
Preservation League, the Miami Beach Chamber of Commerce, the Miami
Beach Development Corporation and the Lincoln Road Task Force.
Time Frame
It is anticipated that a consultant will be selected by June 16,
1993 . Once the consultant is selected, it is anticipated that the
assignment will be completed within one year.
RFP NO: 81-92/93
DATE: 5/14/93 CITY OF MIAMI BEACH
3
REAL ESTATE ADVISORY SERVICES
SCOPE OF SERVICES
ARTHUR ANDERSEN REAL ESTATE SERVICES GROUP
SCOPE OF SERVICES
To accomplish the objectives of soliciting of developers and securing viable commitments to
develop and operate one or more high quality, convention headquarters hotels, we propose
a series of sequential tasks as follows:
Task I- Review And Evaluate Existing Materials.
At the outset of the engagement, we would review all materials,
plans or reports prepared to date by or for the City concerning the
"City Center/Historic Convention Village Redevelopment and
Revitalization Area". Of particular importance are:
•
♦ Market studies and related materials which indicate the nature
and type of the potential opportunity relative to hotel room
demand and achievable average daily room rates;
♦ Financial feasibility analyses and their underlying assumptions
and parameters with regard to the financial viability of one or
more convention headquarters hotels;
♦ Development plans for the area, including public commitments
for control of the development sites and investment in
supporting area infrastructure; and
♦ Proposed incentive package to be provided to developers.
We will review these materials with a view to their suitability and
adequacy for summary and presentation to prospective
developer/bidders. During this process, we would identify any
potential deficiencies and review these with the City. If these
deficiencies are of a nature which would raise substantial
unresolved questions or risks to a potential developer/bidder, we
would clearly identify these areas and request the City address these
either in the context of further studies or other means.
TASK II- Prepare A Marketing/RFP Prospectus.
Closely coordinating this task with the City, we will prepare a draft
"prospectus" to solicit developer/bidder interest in the convention
headquarters hotel sites. At the commencement of this task, we
would discuss and review with the City the "prospectus" in terms:
♦ Content;
♦ Scope and type of information;
• Specificity of terms; and
• Format of presentation.
Once these issues have been addressed, and agreed upon with the
City, we would then prepare a draft prospectus. The City would
retain control over the final approval of the content, language and
presentation of the package.
Concurrent with preparation of the solicitation package, we would
work with the City to identify and prepare supporting, detailed
information which would be provided to prospective
developers/bidders.
TASK III- Prepare A List Of Prospective Bidders.
This task would be divided into several steps. First, we would
prepare a comprehensive listing of potentially qualified developers,
investors, hotel operators and/or management companies, and the
like, who by virtue of their background, financial resources and
potential interest in the Miami Beach Convention market would be
highly qualified targets; this listing would be based on our world-
wide network of clients, interest and capabilities as well as our
industry-wide contacts. Second, we would review with the City
developers, hotel operators, franchise organizations and others who
have previously expressed interest in the development, operation
and ownership of a convention headquarters hotel on Miami Beach.
We would then combine these lists and carefully review it with the
City for overlap, duplication and the like. Lastly, we would
undertake a final review using our world-wide network to verify
potential candidates and to assure that the list is all encompassing.
Based on the preceding steps, we would then prepare a final list.
The final list would specifically identify:
• Name of organization; and
• Principal contact and address.
When approved by the City, this list would form the basis for
distribution of the marketing/RFP prospectus.
During this task, we would also review with the City procedures and
policies for solicitation and procurement of development interests,
including advertisement requirements and similar matters required
under either City codes or State statutes.
TASK IV- Establish Guidelines For Responses To The Request For Proposal.
In this task we would prepare a set of detail guidelines, consistent
with City policies and industries practices for development of
proposal responses. These guidelines would address such matters
as:
♦ The complete proposing entity, including legal form;
♦ Demonstration of financial capacity to perform, including any
initial deposits;
♦ Propose business arrangements (e.g., deal terms);
♦ Individual authorized to commit and bind the proposing entity;
♦ Development concept and level of specificity;
♦ Propose timetable for proceeding if selected, and any
performance conditions;
♦ Relevant experience and references; and
♦ Financial statements.
TASK V- Finalize And Issue The Marketing PackagelRFP.
Upon approval the "draft" marketing/RFP prospectus by the City,
including in corporation of guidelines for developer responses, we
will finalize the marketing/RFP prospectus.
We would then supervise printing, production and distribution of the
marketing/RFP prospectus to the approved list of qualified
developers, investors, hotel/management companies and franchise
operators, as agreed upon with the City. The distribution of the
prospectus would be consistent with applicable City and State law or
policies governing solicitations of this nature.
TASK VI- Prepare And Finalize Selection Criteria.
Concurrent with the finalization of the RFP, we would prepare an
initial set of selection criteria for review by the City. These selection
criteria would be organized into several components as follows:
♦ Technical merits of development proposal;
♦ Strength and development capability of proposing entity;
♦ Financial capacity to perform; and
♦ Financial terms of the development deal.
After the issuance of the RFP, we would continue to refine the
specificity of criteria with the City as well as responsibilities for
evaluating proposals relative to the established criteria.
TASK VII- Coordinate And Participate In The Proposal Interviews.
Upon receipt of development proposals, we would work with the
City to conduct a technical review and verify all key aspects of the
development proposals in the context of the agreed upon evaluation
criteria established in Task VI. Included in the review would be:
♦ A financial analysis of the development proposal;
♦ Verification of financing capacity to perform; and
♦ Verification of credentials/capabilities.
Upon review of the development proposals, we recommend an
initial "confidential" ranking be prepared. This ranking would serve
as a basis to formulate key questions and issues to be addressed
during the interviews.
Next, we would coordinate and work with the City to schedule
interviews. We would establish a format, schedule, and outline an
agenda of items to be addressed with each developer, generally, as
well as with specific issues relative to each development proposal.
We would then assist and participate with the City in the interviews.
Based on the interviews, we would then coordinate a final review
and ranking of the development proposals.
The requested scope of work under RFP 81-92/93 did not identify services to be performed
beyond "coordinate and participate in the developer interview process." In our experience,
there are several important subsequent steps. These include (1) formal selection of the
developer, (2) negotiation of a development deal and (3) documentation of business terms.
We are fully prepared to provide these services to the City of Miami Beach should these be
required upon completion of the stated scope of services in RFP 81-92/93.
• REAL ESTATE ADVISORY SERVICES
PROJECT
MANAGEMENT/COORDINATION
ARTHUR ANDERSEN REAL ESTATE SERVICES GROUP
t
PROJECT MANAGEMENT/COORDINATION
This section describes our approach to project management, coordination with the City and
scheduling of the work.
Engagement Team
We propose to commit senior professional resources to the conduct of the engagement. In
this regard, the engagement would be co-managed by two senior Principals, Michael A. Stein
and J. Kevin Lawler. In addition, David Heath, Manager, would direct day-to-day staff
activities of the engagement.
The responsibilities and capabilities of the "core" engagement management team are as
follows:
♦ Michael A. Stein: Michael has over 22 years of experience in
Principal hospitality and real estate consulting. Michael is
the Miami office and Hospitality and Real Estate
Advisory Practice Director.
Michael would be responsible for client
coordination throughout the duration of the
engagement.
♦ J. Kevin Lawler: Kevin has 20 years of experience in advising
Principal private and public clients on development and
venture structures. Kevin divides his time
between the Washington, D.C. and Miami office.
Kevin would be responsible for technical direction
of the engagement.
♦ David Heath: David has 16 years of experience in the
Manager hospitality field. David is the senior Manager in
the Miami office Hospitality and Real Estate
Advisory Practice.
David would have day-to-day responsibility for
staff direction in this assignment.
In addition to the core engagement team, we would draw on senior resources of the Firm.
These include:
• Ivan Faggen, Worldwide Director, Real Estate Services Group;
♦ Robert Davis, Real Estate Capital Markets; and
• Edward Hess, Real Estate Capital Markets.
Messrs. Faggen, Davis and Hess would be an integral part of the engagement team. They
would provide direction and assistance with regard to the preparation of the list of qualified
prospective developers bidders and review the marketing/RFP package. Furthermore, they
would be called upon as needed with regard to review and evaluation of development
proposals.
Resumes for the core engagement team of Messrs. Stein, Lawler and Heath are
accompanied in this section.
Schedule
We are prepared to commit resources and to move forward on a timely schedule which
permits the City and other interested parties adequate time and review and approve key
materials. Based on our prior experience on similar engagements, we suggest the following
schedule:
TASKS TIMING
TASK I- Review and Evaluate Existing Materials 2-3 Weeks
TASK II- Prepare Draft Marketing/RFP Prospectus
TASK III- Prepare a List of Potential Bidders 4-5 Weeks
TASK IV- Establish Guidelines for Proposal Response
TASK V- Finalize and Issue the Marketing Prospectus/RFP
TASK VI- Prepare and Finalize Selection Criteria 2 Weeks
TASK VII- Coordinate and Participate in Proposal Interviews To Be Determined
Coordination With The City
The outset of the engagement, we would propose to meet with City staff responsible for the
overall management of the project to establish a specific timetable and a coordination
process. Our approach to engagements of this nature is interactive. In this regard, we
would plan to meet with applicable City staff at the commencement and completion of each
task.
We propose that sufficient time be "built in" to the overall timetable to permit adequate
review by the City and requisite and participation of community members of the Art Deco
Hotel Association, the Miami Beach Hotel Association, the Greater Miami Convention
Visitors Bureau, the Citizens Advisory and Technical Committee, the Ocean Drive
Association, the Miami Design Preservation League, the Miami Beach Chamber of
Commerce, the Miami Beach Development Corporation and the Lincoln Road Task Force.
We look to the City to provide direction on the responsibility for soliciting input and review
of the interested organizations. Our approach to the engagement provides for a Principal
to be involved in up to 10 "input and review meetings" with interested organization and
community groups.
s
' REAL ESTATE ADVISORY SERVICES
CAPABILITIES AND EXPERIENCE
ARTHUR ANDERSEN REAL ESTATE SERVICES GROUP
CAPABILITIES AND EXPERIENCE
Real estate and hotels are two of Arthur Andersen's primary industry concentrations. The
Arthur Andersen's Real Estate Services Group ("RESG") is the largest advisory organization
of its kind. The RESG consists of over 1,200 professional personnel, serving 6000 real
estate clients. Members of RESG have substantial experience in analyzing development
ventures, identifying viable development venture partners and assisting clients in negotiating
development venture agreements for both commercial real estate and major hotels. Client
engagements have been conducted for both private and public entities.
Arthur Andersen is an industry leader in audit, business advisory and consulting services to
hotels. A representative listing of our clients is as follows:
Hotel Company Audit Clients Hotel Industry Consulting Clients
- Accor (France) - American General Hospitality
- Choice Hotels International (U.S.) - Bacardi Corporation
- Copthorne Hotels (U.K.) - Carnicon Management Associates
- Doubletree Hotels Corporation (U.S.) - The Continental Companies
- Drury Inns, Inc. (U.S.) - Danubius Hotels
- Hilton Hotels Corporation (U.S.) - Embassy Suites
- Hyatt International Hotels (U.S.) - Four Seasons Hotels, Ltd.
- Hoteles Calinda (Mexico) - Guest Quarters Suite Hotels
- Hoteles Melia (Mexico) - Hampton Inn Hotels
- Inter-Continental Hotels Group (U.K.) - Hilton Grand Vacations Company
- International Leisure Group (U.K.) - Holiday Inn Worldwide
- ITT Sheraton Corporation (U.S.) - Hyatt Corporation
- Marriott Corporation (U.S.) - Metro Hotels
- N.H. Group (Spain) - Nations Bank
- Omni Hotels (U.S.) - Paine Webber Properties
- Principal Hotels Group, PLC (U.K.) - Rahn Properties, Inc.
- Promus Companies (U.S.) - The Ritz-Carlton Hotel Company
- Posadas de Mexico (Mexico) - Rosewood Hotels & Resorts
- Radisson Hotels International (U.S.) - Sonesta Hotels
- Ramada International Hotels & Resorts (U.S.) - Vail Associates
- Red Lion Hotels & Inns (U.S.) - Western Europe Hotels, Inc.
- Societes des Bains de Mer (Monaco) - Westin Hotels & Resorts
- Wyndham Hotels & Resorts (U.S.) - Westinghouse Financial Services
Arthur Andersen's RESG serves many of the largest developers, owners and investors in
real estate, worldwide. Clients include:
- Aetna Realty Investors, Inc. - Mitsui Taiyo Kobe Bank
- Arico America Real Estate Investment Company - Morrison Knudsen Corp.
- Artery Organization, Inc. The - Mutual Benefit Life Insurance Company, The
- Banco Central Hispanoamer - Nations Bank
- Bankamerica Corporation - Nomura Securities Co.,Ltd.
- Beacon Homes Company - Noro Group of Companies, The
- Beal Companies, The - Nouveaux Constructeurs
- BICC P.L.C. - O'Connor J.W.,& Co., Inc.
- Blackman, Flynn& Co. - Orix Real Estate Equities, Inc.
- Boston Financial Group - Pennsylvania Real Estate Investment Trust
- Capital Guidance Corporation - Perini Corporation
- Carlson Companies, Inc. - Posadas De Mexico S.A.De CV
- Carlyle Group, The - Promus Companies, The
- Carter & Associates, Inc. - Resolution Trust Corporation
- Casden Company, The - Robert, J.E.,Company, The
- Ceasers World, Inc. - Rodamco N.V.
- Centex Corporation - Rosehaugh Company PLC
- Circus Circus Hotels, Inc. - Rubloff Real Estate & Capital, Inc.
- Continental Development Corporation - Sade S.A.C.C.I.F.M.
- Cousins Properties, Incorporated - Salomon Inc.
- CRI, Inc, - Security Properties, Inc.
- Deutsche Bank AG - Seibu Urban Development Corporation
- Draper and Kramer Incorporated - Shidler & Co.
- Eastern Realty Investment Corporation - Sierra Real Estate Equity Trust
- Equitable Real Estate Investment Mgmt.,Inc. - Societe Auxiliaire D'Enterprises
- Federated Development Company - Spaulding and Slye Corporation
- First Boston, Inc. - Spie Batignolles
- First Interstate Bancorp - Standard Trust
- Ford Motor Company - Standard-Pacific Corp.
- General Electric Company - Synco, Inc.
- General Homes Corporation - Takenaka Engineering And Construction
- Glenborough Corporation - Takenaka Komuten Co.,Ltd.
- Golf Hosts International - Tishman Speyer Crown Equities
- Great American Management And Investment - Trammel Crow
- Grubb And Ellis Company - Trammel Crow Ventures
- Hall Real Estate Corporation - Transmanche Link
- Hancock John Properties, Inc. - Trump's Castle
- Hancock, John, Mutual Life Insurance Company - Trump's Plaza
- Heartland Group, Inc. - Trump Taj Mahal
- Hines, Gerald D.,Interests - Turner Corporation
- Interstate General Corporation - U.S. Home Corporation
- Kajima Engineer & Construction - Union Bank of California
- Koll-Wells - US West Realty
- Kranzco Realty Trust, Inc. - Weyerhaeuser Company
- Kumagai Gumi Co.,LTD - Wilma International
- Lee, Yau, Construction Co.,Ltd. - Winthrop Financial Co.,Inc.
- Lehndorff Vermogensverwaltung GMBH - Wyndham Hotels And Resorts
- Lincoln Property Company - Zyeckendorf Company, The
Relevant Experience
On behalf of both public and private clients, we have undertaken the following directly
relevant engagements:
♦ Union Station Redevelopment Corporation - Washington, D.C.
Over a several year period, we analyzed the redevelopment potential of this
significant historic property, formulated the development program, assisted the
client in securing necessary financial commitments, organized and managed
the nonprofit development corporation, prepared development RFP's,
solicited developer proposals and negotiated with and on behalf of a joint
venture for the redevelopment of this property.
Contact: Keith Kelly
Executive Director
Union Station Redevelopment Corporation
(202) 906-4130
♦ Architect of the Capital - Washington, D.C.
On behalf of this client, we assisted in defining a development program for
a major mixed use building on a highly prominent Federal site and organized
and managed the development process, including preparation of a developer
RFP's, review of development proposals and selection and negotiation of
development and financing proposals for a 550,000 square foot mixed use
building.
Contact: George M. White
FAIA
Architect of the Capital
(202) 225-1200
♦ Convention Center Hotel - San Diego, CA
Over a 3 1/2 year period, we assisted and advised this client in a development
program and financial packaging of a development of a 1,000 room
headquarters hotel to-be-built in conjunction with a new convention center.
Our work encompassed evaluating alterative development proposals,
formulating a financial public investment package and negotiation of
development deal terms with a major hotel developer.
Contact: Gerald M. Trimble,
Former Executive Director
Centre City Development Corporation
(619) 942-0380
♦ Bell Atlantic Corporation - Metropolitan, Washington
Over the past 6 years, we have worked on an ongoing basis for this owner of
a substantial inventory of excess property in formulating joint venture
development projects for major properties. In each of these, we have
prepared initial market and financial evaluations of the opportunity, identified
potential developer candidates, specified initial development deal terms,
prepared request for proposals and evaluated proposal responses. Based on
these, we have assisted this client in negotiating development ventures on
several of these properties.
Contact: Steven Masterman
Manager of Real Estate
(703) 974-6048
♦ Champion Realty Corporation - Flemming Island, Florida Property
We assisted this client in a strategy for the development of a substantial
parcel of land, including an appropriate deal structure which balanced the
corporation's financial objectives with traditional real estate financial
structures. We then prepared solicitation materials, identified and targeted
developers, reviewed developer proposals and assisted in selecting a preferred
developer. Once the preferred developer was selected, we assisted and
supported the client in negotiating a long-term development venture for the
property.
Contact: Roland Diaz
President
(713) 874-1700
We have recently been retained by Skopbank to serve as their development advisor on the
redevelopment of the Martini Tower in downtown Brussels, Belgium, including solicitation
and negotiation of a developer arrangement for the property. We have undertaken similar
engagements for such as clients as DataPoint Corporation, Thompson Consumer Electronics,
the Downtown Anchorage Development Corporation, and Lakeland Florida Downtown
Development Authority.
Related Experience
The significant part of our practice involves working with existing owners, operators and
developers of major real estate projects. In this regard, we are regularly involved in
developing business and financial strategies for existing and to-be-built properties and
performing many of the services identified in the scope of work under our RFP 81-92/93.
A representative listing of these related hotel assignments include:
♦ Williams Hospitality - Puerto Rico
We advised the owners of El San Juan, El Conquistador and the Condado
Plaza in deciding as to the type of franchise best suited for the project given
the advent of new hotel companies coming to the island. We also, assisted in
the negotiations with the various hotel companies.
♦ Hyatt Regency - Miami
We prepared an investment package on this property in order to obtain
funding through European banks and additional equity partners.
♦ Hyatt Regency - St. John
We worked with Skopbank in the selection and negotiation with Hyatt Hotels
for the operation of this resort facility.
♦ The Colonnade Hotel - Coral Gables
We assisted the buyers in the negotiation and extension of a management
contract on this property and in determining the best strategy for the
investment in terms of cost allocations and price structure.
♦ Biltmore Hotel - Coral Gables
We worked with the City of Coral Gables in reviewing the investor package
prepared by the current operators.
♦ Omni Hotel - Miami
We advised the lender as to the management contract and a strategic plan for
the property.
♦ Sheraton Hotel - Miami
We worked with the insurance company to determine the best flag to place
on this hotel and determine what amenity package the property would need
in order to strengthen its market position.
♦ Miami International Airport Hotel - Miami
Worked together with the government of Dade County in reviewing the
operator packages for this property.
♦ The Ritz Plaza - Miami Beach
We advised the owners as to the best operating structure to improve the cash
flow, and methods to reposition this property.
♦ The Mayfair Hotel - Coconut Grove
We advised the lender on the selection of a hotel operator and the
negotiations of the management contract. We also assisted the owner in the
operation of this facility for a period of 2 1/2 years.
A directly related area of our practice involves the preparation of investment packages for
owners. Recent representative assignments involving hotel investment packages prepared
by our real capital markets practice include:
- The Kilroy Airport Center - California
- Rancho Bernardo Inn - California
- Jumby Bay Hotel - Antigua
- La Jolla Hotel - California
- La Jolla/Collins Companies
- 100 Park Avenue - New York City
- Le Meridien Hotel - New York City
- Hyatt Regency Maui and Waikiki
REAL ESTATE ADVISORY SERVICES
MICHAEL A. STEIN
Principal
Mr. Stein, a principal with Arthur Andersen & Co., Real Estate Services Group, has been
part of the hospitality/resort real estate industry for the past 25 years. During this time, he
has been involved in the management and planning of projects on a national and
international scale. Some of his areas of specialization include operation and system reviews,
management contract negotiations, assistance to on-site management in projections,
economic property evaluation and appraisals of existing business ventures, tourism,fiscal and
economic impact analysis. In addition, he has been involved in a number of transaction-
related activities, including workouts for under-performing assets. His latest activities have
included the asset management of six properties in the Southeastern United States for
owners and/or financial institutions.
He has conducted hundreds of engagements in the United States and is recognized by his
peers as a leader in the hospitality/resort real estate consulting industry. Mr. Stein has
served as an expert witness in a number hotel litigation cases. He has published numerous
articles and has been invited to act as keynote speaker at many national and international
conferences.
Mr. Stein is a member of the Cornell Society of Hotelmen, The Board of Directors of the
Greater Miami Hotel & Motel Association, Advisory Board Member of the Four Seasons
Hotel, Lake of the Ozarks, Missouri. He is also strongly involved in community
organizations in the Greater Miami area.
Mr. Stein attended the University of Southern Mississippi receiving his Bachelor of Science
degree in 1968. He continued his studies at Cornell University where he received a second
degree in Hotel Administration. He attended the University of Miami (1976) and Yale
University (1989) to complete work in accounting, finance, and advance management.
Furthermore, his education has been enhanced by over 1000 hours of professional
development courses.
ARTHUR ANDERSEN REAL ESTATE SERVICES GROUP
REAL ESTATE ADVISORY SERVICES
J. KEVIN LAWLER
Principal
Mr. Lawler joined Arthur Andersen in 1973. He has directed a variety of assignments
involving the application of market and financial analysis to solve development-related issues
and to structure real estate investment/financing opportunities for private and public clients.
Mr. Lawler is active in advising clients in the ownership, investment, financing and
development of major real estate projects and assets. He recently completed a financial
evaluation of a portfolio of 10 high profile downtown Washington, D.C. commercial office
building for a to be formed R.E.I.T. and advised Deutsche Bank Realty Advisors on the
strategic positioning of a portfolio of 12 major properties amounting to over 9.0 million "
square feet of office and retail space and in excess of $1.2 billion in current value. Mr.
Lawler recently completed for GTE Realty Corporation a strategic framework for their
ownership interest in a major commercial mixed-use project in downtown Tampa and serves
as the asset manager advisor on this property. Additionally, Mr. Lawler is currently
completing an evaluation of a portfolio of 33 apartment properties with 13,000 units for a
securitized financing transaction and is advising Dade County Aviation Department on the
potential acquisition of the Miami Free Trade Zone and additional properties.
Mr. Lawler is currently advising the International Monetary Fund and the National Rural
Electric Cooperative Association on the acquisition/ development of a new headquarters
and assisting Bell Atlantic on a development venture for a major office building. He has
recently completed assignments for Thomson Consumer Electronics, American Psychological
Association, the International Union of Bricklayers and Allied Craftsmen, the National
Academy of Sciences, the Paralyzed Veterans of America, American Red Cross,
Communication Workers of America, International Food Processors, the National
Geographic Society, BASF Corporation; all these assignments have involved advising and
representing these clients in the negotiation of leases, joint ventures and the purchase of
commercial office buildings. He has been active in advising substantial landowners and
developers throughout the Washington, D.C. Metropolitan Area, as well as Northern New
Jersey, suburban Baltimore, and Tampa/St. Petersburg, Palm Beach, Ft. Lauderdale and
Miami, Florida on commercial development.
Mr. Lawler has extensive experience in all facets of large scale land development. He has
advised a Japanese financial organization in the acquisition of several large hotel and resort
development properties. He has been deeply involved in analyzing potentials and the
strategic structure of development programs and financial feasibility of multi-year, multi-use
development projects in Tampa, Orlando, Ft. Myers/Cape Coral and West Palm Beach,
Florida; Northern New Jersey; the Washington and Baltimore corridors and Southern
California in recent years. These assignments have involved substantial land holdings to-be-
developed with mixed residential densities and related amenities, commercial office,
community and regional shopping centers, and hotel uses.
ARTHUR ANDERSEN REAL ESTATE SERVICES GROUP
REAL ESTATE ADVISORY SERVICES
Mr. Lawler has served as an advisor to both public agencies and private interest in the
formation of"public-private"development ventures. Specifically, he served as the real estate
advisor to San Diego's Centre City Development Corporation on the development of a 1,000
room hotel in conjunction with a new convention center. He has also advised the
Municipality of Anchorage, Alaska, the Downtown Development Authority of Lakeland and
Tampa, Florida and the City of Hoboken, NJ on major commercial development projects.
For private developers, he has been actively involved in analyzing and structuring real estate
development ventures involving public participation.
Mr. Lawler holds a B.S. from Michigan State University and a Masters of City Planning from
Harvard University. He served as an advisor to the National Trust for Historic Preservation,
representing the District of Columbia between 1977 and 1980. He was a graduate instructor
in Land Economics and Real Estate Investment Analysis at George Washington University
for several years. Mr. Lawler recently taught an advanced real estate investment and finance
course through the University of Maryland. He has lectured extensively on real estate
development and finance at Wharton School (University of Pennsylvania), Harvard Business
School and Georgetown University.
Mr. Lawler is a member of the Urban Land Institute.
ARTHUR ANDERSEN REAL ESTATE SERVICES GROUP
REAL ESTATE ADVISORY SERVICES
DAVID W. HEATH
Manager
David Heath, a Manager with Arthur Andersen & Co's Real Estate Services Group,
provides operational and development consulting services for the real estate industry. Mr.
Heath has an extensive hospitality mar agement background; his consultingexperience
includes operational consulting as well as market and financial analysis for hotels,
,
restaurants, airports and planned comrrr inities.
Among Mr. Heath's areas of specialization include the following:
• Strategic planning, market repositioning and workouts for
distressed hotels and resorts;
• Development planning, market evaluation and financial analysis
for hotel, resort, casino and planned community developments;
and
• Analysis of operational effectiveness with a view toward
improving the overall profitability of hotels, resorts and private
clubs, through innovative marketing, enhanced internal controls
and labor productivity management.
At the outset of his career, Mr. Heath worked for more than teny ears in various
management capacities in hotel and restaurant operations with, among other companies,
Hyatt Hotels and the Ritz-Carlton Hotel Company. Prior to joining Arthur Andersen, Mr.
Heath supervised the Florida hospitality operational consulting practice of Laventhol &
Horwath and directed numerous consulting engagements in Florida and the Caribbean.
Mr. Heath attended the University of Massachusetts at Amherst, receiving his Bachelor of
Science (Cum Laude) in Hotel Administration with election to the Eta Sigma Delta National
Honor Society in 1980. He continued his education by attending Northeastern University
in Boston, completing the Master of Business Administration program in 1989. Mr. Heath
currently conducts continuing education seminars on Internal Controls for Hotels and
Restaurants for the American Institute of Certified Public Accountants. Mr. Heath has also
guest lectured at the University of New Hampshire, the University of Massachusetts, and for
the Florida Restaurant Association.
1
ARTHUR ANDERSEN REAL ESTATE SERVICES GROUP
• REAL ESTATE ADVISORY SERVICES
FEE PROPOSAL *
* The fee structure is presented in the original proposal only.
ARTHUR ANDERSEN REAL ESTATE SERVICES GROUP
REAL ESTATE ADVISORY SERVICES
PUBLIC ENTITY CRIMES, SWORN STATEMENTS
ARTHUR ANDERSEN REAL ESTATE SERVICES GROUP
SWORN STATEMENT PURSUANT TO SECTION 287.133(3)(a),
• FLORIDA STATUTES, ON PUBLIC ENTITY CRIMES
THIS FORM MAST BE SIGNED AND SWORN TO IN THE PRESENCE OF A NOTARY PUBLIC OR OTHER OFFICIAL AUTHORIZED TO
ADMINISTER OATHS.
1. This sworn statement is submitted to
by Michael A . Stein
(print individual's name and title)
for Arthur Andersen & Co .
(print name of entity submitting sworn statement)
whose business address is One Biscayne Tower , Suite 2100
N ' 11 . • ' I .
and (if applicable) its Federal Employer Identification Number (FEIN) is 36-0732690
(If the entity has no FEIN, include the Social Security Number of the individual signing this sworn
statement: )
2. I understand that a "public entity crime" as defined in Paragraph 287.133(1)(g), Florida Statutes,
means a violation of any state or federal law by a person with respect to and directly related to the
transaction of business with any public entity or with an agency or political subdivision of any other
state or of the United States, including, but not limited to, any bid or contract for goods or services
to be provided to any public entity or an agency or political subdivision of any other state or of the
United States and involving antitrust, fraud, theft, bribery, collusion, racketeering, conspiracy, or
material misrepresentation.
3. I understand that "convicted" or "conviction" as defined in Paragraph 287.133(1)(b), Florida Statutes.
means a finding of guilt or a conviction of a public entity crime, with or without an adjudication of
guilt, in any federal or state trial court of record relating to charges brought by indictment or
information after July 1, 1989, as a result of a jury verdict, non-jury trial, or entry of a plea of
guilty or nolo contendere.
4. I understand that an "affiliate" as defined in Paragraph 287.133(1)(a), Florida Statutes, means:
1. A predecessor or successor of a person convicted of a public entity crime; or
2. An entity under the control of any natural person who is active in the management of the entity and
who has been convicted of a public entity crime. The term "affiliate" includes those officers,
directors, executives, partners, shareholders, employees, members, and agents who are active in the
management of an affiliate. The ownership by one person of shares constituting a controlling interest
in another person, or a pooling of equipment or income among persons when not for fair market value
under an arm's length agreement, shall be a prima facie case that one person controls another person.
A person who knowingly enters into a joint venture with a person who has been convicted of a public
entity crime in Florida during the preceding 36 months shall be considered an affiliate.
5. I understand that a "person" as defined in Paragraph 287.133(1)(e), Florida Statutes, means any natural
person or entity organized under the taws of any state or of the United States with the legal power to
enter into a binding contract and which bids or applies to bid on contracts for the provision of goods
or services let by a public entity, or which otherwise transacts or applies to transact business with
a public entity. The term "person" includes those officers, directors, executives, partners,
shareholders, employees, members, and agents who are active in management of an entity.
6. Based on information and belief, the statement which I have marked is true in relation to the entity
submitting this sworn statement. (indicate which statement applies.)
X Neither the entity submitting this sworn statement, nor any of its officers, directors,
executives, partners, shareholders, employees, members, or agents who are active in the
management of the entity, nor any affiliate of the entity have been charged with and convicted
of a public entity crime subsequent to July 1, 1989.
The entity submitting this sworn statement, or one or more of the officers, directors,
executives, partners, shareholders, employees, members, or agents who are active in the
management of the entity, or an affiliate of the entity has been charged with and convicted
of a public entity crime subsequent to July 1, 1989.
RFP NO: 81-92/93
DATE: 5/14/93 CITY OF MIAMI BEACH
8
The entity submitting this sworn statement, or one or more of its officers, directors,
. executives, partners, shareholders, employees members, or agents who are active in the
management of the entity, or an affiliate of the entity has been charged with and convicted
of a public entity crime subsequent to July 1, 1989. However, there has been a subsequent
proceeding before a Hearing Officer of the State of Florida, Division of Administrative
Hearings and the Final Order entered by the Hearing Officer determined that it was not in the
public interest to place the entity submitting this sworn statement on the convicted vendor
list. (attach a copy of the final order)
I UNDERSTAND THAT THE SUBMISSION OF THIS FORM TO THE CONTRACTING OFFICER FOR THE PUBLIC ENTITY IDENTIFIED IN
PARAGRAPH 1 (ONE) ABOVE IS FOR THAT PUBLIC ENTITY ONLY AND, THAT THIS FORM IS VALID THROUGH DECEMBER 31 OF THE
CALENDAR YEAR IN WHICH IT IS FILED. I ALSO UNDERSTAND THAT I AM REQUIRED TO INFORM THE PUBLIC ENTITY PRIOR TO
ENTERING INTO A CONTRACT IN EXCESS OF THE THRESHOLD AMOUNT PROVIDED IN SECTION 287.017, FLORIDA STATUTES FOR
CATEGORY TWO OF ANY CHANGE IN THE INFORMATION CONTAINED IN THIS FORM.
46(114‘A‘-'
(Signature)
June 2 , 1993
STATE OF
Florida (date)
COUNTY OF Dade
PERSONALLY APPEARED BEFORE ME, the undersigned authority,
Michael A . Stein , who, after first being sworn by me, affixed his/her signature
in the space provided above on this 2nd day of June , 19 9 1.
\ /
914I (UBLI
My Commission Expires: 49
`011 PV4 OPPICIAL NOTARY UAL
O , ■YMA• $ SANTINI/
* It' coss�ON Iiv IWI
CC1$2s44
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4F SY CO S 3alON UP.
OF f. DEC. • 1,I,
FORM PUR 7068 (Rev. 06/05/91)
RFP NO: 81-92/93
DATE: 5/14/93 CITY OF MIAMI BEACH
9