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95-21621 Reso • RESOLUTION NO. 95-21621 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA RATIFYING THE ACTIONS OF THE MIAMI BEACH REDEVELOPMENT AGENCY IN AMENDING MIAMI BEACH REDEVELOPMENT AGENCY RESOLUTION NO. 195-95 AND PROVIDING HCF GROUP, INC. WITH AN ADDITIONAL THIRTY (30) DAYS WITHIN WHICH TO OBTAIN A HOTEL CHAIN AFFILIATION AND ADDITIONAL EQUITY WHEREAS, on March 15, 1995, the Miami Beach Redevelopment Agency (the "Agency") adopted Resolution No. 195-95 ("First Resolution") (copy attached), providing that the HCF Group, Inc. ("HCF") would have until June 13, 1995 within which to obtain a hotel chain affiliation and additional equity, subject to the terms and conditions of the First Resolution; and WHEREAS, since the adoption of that First Resolution, HCF has submitted progress reports as provided in the First Resolution, and has been analyzing and negotiating various issues relating to their proposed hotel project; and WHEREAS, the First Resolution provided, among other things, that HCF would provide to the Agency binding written commitments regarding a hotel operator and the infusion of equity by June 13, 1995; and WHEREAS, HCF is in the midst of negotiations with various individuals and entities regarding the proposed project; and WHEREAS, HCF has requested an additional thirty (30) days beyond June 13, within which to comply with the First Resolution; and WHEREAS, the City and the Agency consistently have reaffirmed their commitment to assist in the development of an African-American owned hotel. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA THAT THE FOLLOWING ACTIONS OF THE MIAMI BEACH REDEVELOPMENT AGENCY are ratified: 1. Agency Resolution No. 195-95 is amended so that the words "June 13, 1995" will be replaced with the words "July 13, 1995" wherever those words appear in that resolution. 2. In the event of any conflicts between the June 21, 1995 Agency resolution amending Agency Resolution 195-95 and Agency Resolution No. 195-95, the June 21, 1995 resolution shall prevail. 3. All other terms and provisions of Resolution No. 195-95 are unchanged. PASSED and ADOPTED this 21st ..:y of June 1995. (A , MAYOR ATTEST: FORD CLERK L EP - - / By _ .� C:IWPWIN601PIA\RESOS\HCF.RE2 Date __-.- 2 RESOLUTION NO. 195-95 THE CHAIRMAN AND MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY AUTHORIZE AND DIRECT THE AGENCY TO OFFER HCF GROUP, INC. UNTIL JUNE 13 , 1995 WITHIN WHICH TO OBTAIN A HOTEL CHAIN AFFILIATION AND ADDITIONAL EQUITY, AS SPECIFICALLY DESCRIBED IN THIS RESOLUTION. WHEREAS, the City Administration received the attached letter from Peter Calin of the HCF Group, Inc. ("HCF") , advising that Sheraton had withdrawn from the project; and WHEREAS, Sheraton had proposed an $8 million equity contribution which was pivotal to HCF for the financing of this project; and WHEREAS, HCF has asked for time to obtain a replacement hotel affiliation and to obtain the financial participation required for this project; and WHEREAS, the City and the Miami Beach Redevelopment Agency ("Agency") consistently have reaffirmed their commitment to assist in the development of an African-American owned hotel. NOW, THEREFORE, BE IT DULY RESOLVED BY THE CHAIRMAN AND MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY that the Agency is authorized and directed to offer HCF until June 13, 1995 within which to obtain a hotel chain affiliation and additional equity, subject to the terms and conditions as described herein: 1. No later than April 14, 1995 , HCF shall submit, in writing, to the Executive Director of the Agency a progress report • specifically identifying the names of hotel operators with whom they have had discussions, the officials with whom the discussions have been held, and the progress made with said officials. 2 . No later than April 29, 1995, HCF shall submit, in writing, to the Executive Director of the Agency, the name of the hotel chain that has been selected by HCF and the proposed financial arrangements with that operator. No later than April 29, 1995, HCF shall submit an updated schedule for equity participation in the project by the new operator, HCF and any other sources. After April 29, 1995, the Agency' s hotel negotiating team will provide a recommendation to the Agency as to whether any further time should be granted to HCF to meet the requirements of this resolution. 3 . After the negotiating team has made a recommendation as provided above, if the Agency continues to allow HCF additional time, then, no later than June 13 , 1995, HCF shall submit to the Executive Director of the Agency an agreement executed by both HCF and said hotel operator evidencing the hotel operator' s binding commitment to act as hotel operator for the project and the ability to fulfill all financial obligations of the project. In the event the Agency has continued to grant further time as discussed above, HCF will also present to the Agency, no later than June 13 , 1995, a letter which shall constitute a binding commitment by individuals and/or entities to infuse the additional equity needed for completion of the project. That letter will be signed by all such individuals and/or entities. Provided that the conditions 2 • indicated in the preceding three sentences have been met, and the hotel operator and the equity participants, and the agreements and/or commitments between them and HCF are acceptable to the City and the Agency, a schedule for negotiations will be established. 4 . Neither the City nor the Agency is obligated to grant this extension or any further extension of time regarding any of the above steps. PASSED and ADOPTED this 15th , day of Mar h , 1995 . ' CHAIRMAN . ---- FORM APPROVED s v E.Cf ARY 4 • i REDEVELOPM AGENCY �' 1.c,• • �^ i:.3. - GEN NSEL fr Date C:\WPWIN60\PIA\HOTEL.RES 3 / r March 3, 1995 • Roger Carlton City Manager Peter j. City of Miami Beach City Hall 1700 Convention Center Drive Miami Beach, FL 33139 Jerry D.Bailey Eugene Ford,Jr. Mr. Carlton: I want to inform you that David Proch-Wilson of Sheraton has to inform me that Sheraton has decided to withdraw from our developmentme project. David indicated that Sheraton's management met recently to review ,s 1995 capital commitments. Its and reprioritize the company's management decided to give priority to cities where it had no presence and reallocated the $8 million of capital committed to Miami Beach to other pro 1ects. appreciates the support have received HCF acknowledges and this hotel development a from the City of Miami Beach in making ii�Brest in making this happen and reality. We all have helrOw will. with your continued p, tt to We all relied on Sheraton's representation that it was has made the a HCF-Sheraton Suites hotel project. Sheraton, how Nevertheless, we still have an business decision to withdraw.that another hotel chain and investors attr will find appealing. Wente view Sheraton's departure as an unfortunate will find appealing. myriad of obstacles common to new hotel delay representative of the e of why there has been no new hotel development. Iton isthedetinto over 25 years. If we continue o 0o ork mutual together, r, hot e Beachsurmountable obstacle to al of building however, itan can American owned hotel on Miami Beach. goal of a Y.O.Box 14d201 Miami,Florida 33114 (305)232181 Fax(305) 3} s continued cooperation and support. After HCF requests the City' in February . we presentation to Sheraton's Board waspostponed thought it prudent to explore the interest of other hotel chains in our • pro ject. Both Marriott and Hyatt have expressed strong interest. Peter J Very truly yours, kicat Jerry D.Balky Pet J alin President Eugene Ford,Jr. cc: Jerry D. Bailey Eugene Ford, Jr. Marvin Holloway Marvin Holloway P.O.Box 144201 Miami,Florida 33114 (305)235-7781 Fax(305)233-7781 • CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139 COMMISSION MEMORANDUM NO. 5© 2 ' 1 TO: Mayor Seymour Gelber and Members of the City Commission DATE: June 21, 1 FROM: Jose Garcia-Pedrosa Laurence Feingo1 City Manager City Attorney aa-1-14- G SUBJECT: A RESOLUTION OF HE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA RATIFYING THE ACTIONS OF THE MIAMI BEACH REDEVELOPMENT AGENCY IN AMENDING MIAMI BEACH REDEVELOPMENT AGENCY RESOLUTION NO. 195-95, PROVIDING HCF GROUP, INC. AN ADDITIONAL THIRTY (30) DAYS WITHIN WHICH TO OBTAIN A HOTEL CHAIN AFFILIATION AND ADDITIONAL EQUITY RECOIMENDATION It is recommended that the Mayor and Members of the City Commission of the City of Miami Beach, Florida adopt the Resolution ratifying the actions of the Miami Beach Redevelopment Agency granting HCF Group, Inc. (HCF) an additional thirty (30) days from June 13 , 1995, to July 13 , 1995, within which time to obtain a hotel chain affiliation and additional equity. BACKGROUND On March 15, 1995, the City Commission ratified the Miami Beach Redevelopment Agency Resolution No. 195-95, providing that the HCF Group, Inc. would have until June 13 , 1995 to meet specific performance requirements relating to their proposed hotel project . One of the requirements was that HCF would provide to the Agency binding written commitments regarding a hotel operator and the infusion of equity by June 13 , 1995 . Negotiations are ongoing and HCF has requested an additional thirty (30) days to comply with all of the requirements of Resolution No. 195-95 . AGENDA ITEM Rq- 14 DATE b`2 I --1 S ANALYSIS The City of Miami Beach and the Agency have consistently reaffirmed their commitment to assist in the development of an African- American Hotel . The Hotel Negotiations Team has recommended that this extension be granted. A letter from Arthur Courshon, Chairman of the Hotel Negotiations Team, is attached. CONCLUSION It is recommended that the Mayor and City Commission adopt the Resolution ratifying the actions of the Miami Beach Redevelopment Agency granting the thirty (30) day extension. JGP:HSM: jm Attachment