97-22537 RESO
RESOLUTION NO.
97-22537
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA,
AUTHORIZING THE CITY MANAGER TO EXECUTE A
THIRD AMENDMENT TO THAT CERTAIN LETTER
AGREEMENT, DATED DECEMBER 10, 1996, BETWEEN
THE CITY AND STERLING MIAMI BEACH THEATER
ASSOCIATES, LTD. (STERLING), REGARDING THE
DESIGNATION OF STERLING FOR NEGOTIATION OF ITS
RESPONSE TO REQUEST FOR PROPOSALS NO. 104-95/96,
FOR A MULTIPLEX MOVIE THEATER ON LINCOLN
ROAD (RFP); SAID AMENDMENT CONTINUING TO
EXTEND THE TIME PERIOD BY WHICH THE CITY IS
REQUIRED TO EITHER COMMENCE NEGOTIATIONS
WITH STERLING, OR REJECT THE PROPOSALS
SUBMITTED BY STERLING IN RESPONSE TO THE RFP,
BY 120 DAYS, THEREBY EXTENDING THE DEADLINE
FROM OCTOBER 9, 1997 TO FEBRUARY 6, 1998.
WHEREAS, on November 6, 1996, the Mayor and City Commission selected the proposal
submitted by Sterling Miami Beach Theater Associates, Ltd. (Sterling), as the sole respondent to
City of Miami Beach Request for Proposal No. 104-95/96 for a multiplex movie theater on Lincoln
Road (RFP); and
WHEREAS, the Mayor and City Commission's designation of Sterling's proposal for
purposes of negotiation, was subject to certain terms and conditions as specified in that certain Letter
Agreement entered into between the City and Sterling, dated December 10, 1996; and"
WHEREAS, pursuant to the terms and conditions of said Letter Agreement, if the City, in
its sole discretion, for any reason or for no reason, decides not to commence negotiations on or prior
to February 6, 1997, the City may reject Sterling's proposal and terminate the entire transaction
without any resultant liability to the City; and
WHEREAS, On February 5, 1997, pursuant to a request from Sterling seeking an
extension of the deadline by which the City may reject Sterling's proposal and terminate the
transaction, the Mayor and City Commission herein authorized the City Manager to execute an
amendment to the December 10, 1996 Letter Agreement, granting Sterling a 120 day extension,
commencing on February 6, 1997 and ending on June 6, 1997; and
WHEREAS, On June 4, 1997, pursuant to a request from Sterling seeking a second
extension of the deadline by which the City may reject Sterling's proposal and terminate the
transaction, the Mayor and City Commission herein authorized the City Manager to execute a
second amendment to the December 10, 1996 Letter Agreement, granting Sterling an additional
120 day extension, commencing on June 6, 1997 and expiring on October 9, 1997; and
WHEREAS, On September 9, 1997, the City Manager received a request fi'om Sterling
for a third 120-day extension of the deadline by which the City may reject Sterling's proposal
to terminate the transaction; and
WHEREAS, the Administration recommends that the Mayor and City Commission
herein authorize the City Manager to execute a Third Amendment to the December 10, 1996 Letter
Agreement, granting Sterling a 120-day extension, commencing on October 9, 1997 ar.d expiring
on February 6, 1998; and
WHEREAS, granting said 120 day extension will continue to keep the City's options open
with respect to insuring a movie theater development on Lincoln Road and provide an incentive for
LRI of South Florida, Ltd., and Finestra Development Corporation to continue to proceed in a
timely manner with their Beach Cinema project.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR A~'I"D CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, authorizing the City Manager
to execute a Third Amendment to that certain Letter Agreement, dated December 10, 1996, between
the City and Sterling Miami Beach Theater Associates, Ltd. (Sterling), regarding the designation of
Sterling for negotiation of its response to Request for Proposals No. 104-95/96, for a multiplex
movie theater on Lincoln Road (RFP); said Amendment continuing to extend the time period by
which the City is required to either commence negotiations with Sterling, or reject the proposals
submitted by Sterling in response to the RFP, by 120 days, thereby extending the deadline from
October 9, 1997 to February 6, 1998.
PASSED and ADOPTED this 24th day 0
ATTEST:
~6 r~~
CITY CLERK
APPROVED AS TO
FORM & lANGUAGE
& FOR EXECUTION
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTEH DRIVE MIAMI BEACH, FLORIDA 33139
http:\\ci.miami-beach.fl.us
COMMISSION MEMORANDUM NO. ~
TO:
Mayor Seymour Gelber and
Members of the City Commission
DATE: September 24,1997
SUBJECT:
A RESOLUTI OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MI~ I BEACH, FLORIDA, AUTHORIZING THE CITY
MANAGER TO EXECUTE A THIRD AMENDMENT TO THAT CERTAIN
LETTER AGREEMENT, DATED DECEMBER 10, 1996, BETWEEN THE
CITY AND STERLING MIAMI BEACH THEATER ASSOCIATES, LTD.
(STERLING), REGARDING THE DESIGNATION OF STERLING FOR
NEGOTIATION OF ITS RESPONSE TO REQUEST FOR PROPOSALS NO.
104-'95/96, FOR A MULTIPLEX MOVIE THEATER ON LINCOLN ROAD
(RFP); SAID AMENDMENT EXTENDING THE TIME PERIOD BY WHICH
TH:E: CITY IS REQUIRED TO EITHER COMMENCE NEGOTIATIONS
WITH STERLING, OR REJECT THE PROPOSALS SUBMITTED BY
STERLING IN RESPONSE TO THE RFP, BY 120 DAYS, THEREBY
EXTENDING THE DEADLINE FROM OCTOBER 9, 1997 TO FEBRUARY
6, 19'98.
FROM:
Jose Garcia-Pedrosa
City Manager
ADMINISTRA TION RECOMMENDATION:
It is recommended the Mayor and City Commission of the City of Miami Beach, Florida adopt the
attached resolution.
BACKGROUND
On November 6, 1996, the City Commission approved in concept, the proposal submitted by
Sterling Miami Beach Theater Associates, Ltd., (Sterling), the sole proposer to City of Miami Beach
Request for Proposals No.1 04-95/96 for a Multiplex Movie Theater on Lincoln Road (RFP). The
designation of Sterling's proposal for negotiations was subject to certain conditions specified in a
Letter Agreement between the City of Miami Beach and Sterling, executed on December 10, 1996.
The agreement allowed the City until February 6, 1997, to commence negotiations with Sterling,
or to reject Sterling's proposal, at the City's sole discretion, for any or for no reason, and to terminate
the entire transaction without any liability to the City.
AGENDA ITEM~
DATE~
On February 5, 1997 and on June 6, 1997, the City Commission authorized two separate
extensions to the deadline by which the City may reject Sterling's proposal and terminate the
transaction. The most recent of the two extensions expires on October 9, 1997.
On September 9, 1997, the City Manager received a letter from Al Cardenas of Tew & Beasley,
requesting an additional 120-day extension of the deadline by which the City may reject Sterling's
proposal to terminate the transaction.
ANALYSIS:
The decision to proceed with negotiations with Sterling for the development of their theater project
on two City-owned lots rested upon the progress ofLRI/Finestra's project, which to date has been
moving forward with site clearing, environmental remediation, completion of construction plans
and the pulling of foundation and shell permits.
The Administration is of the opinion that granting an additional extension will continue to keep
the City's options open with respects to ensuring a movie theater development on Lincoln Road,
and will maintain pressure on LRIIFinestra to proceed without delay on their project.
Conclusion
The proposed third amendment to the December 10th Letter Agreement between the City and
Sterling contains exactly the same protective provisions as the original agreement and the first two
amendments thereto, giving the City an additional 120 days to enter into negotiations with Sterling
or to reject Sterling's proposal, at the City's sole discretion, for any or for no reason and to terminate
the entire transaction without any liability to the City.
JGP~kOb
Attachment