94-21331 RESO Incomplete
RESOLUTION NO.
94-21331
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA
AUTHORIZING THE MAYOR AND CITY CLERK TO
EXECUTE THE ATTACHED AGREEMENT BETWEEN THE
CITY OF MIAMI BEACH AND THE TISHMAN HOTEL
CORPORATION FOR HOTEL NEGOTIATOR SERVICES.
WHEREAS, the City of Miami Beach City Commission has selected
two development firms to develop convention hotels; and
WHEREAS, the City of Miami Beach is preparing to enter into
negotiations with these firms; and
WHEREAS, this negotiation will lead into commitment of public
funds; and
WHEREAS, the City of Miami Beach desires to retain consultants
to assist with these negotiations; and
WHEREAS, the Tishman Hotel Corporation was selected from a
field of six qualified firms and is capable of providing these
services.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA THAT THE MAYOR AND
CITY CLERK ARE HEREBY AUTHORIZED TO EXECUTE THE ATTACHED AGREEMENT
BETWEEN THE CITY OF MIAMI BEACH AND THE TISHMAN HOTEL CORPORATION,
TO PROVIDE HOTEL NEGOTIATOR SERVICES.
PASSED and ADOPTED this 5th
, 1994.
ATTEST:
~~J ? <~,~
CITY CLERK
CITY ATTORNEY
(
Date
10/04/94 09:36 FAX 212 262 0037 TISHMAN
"OCJ-~~-~4 18,07 FROM, DEV/OSStGN/H.P. SERVICES
10; 3""'-:; 873 7772
@002
PACE 1
CITY OF-
MIAMI
BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139
-'-
OF~ICE OF THE CITY MANAGER
TELEPI10NE: 13D!i) 173.7010
FAX: (305) 173-7112
Seplcmber 30. 1994
Mr. John Tishman
President and CF.O
Tishman I10tcl Corporation
666 J:i Iih A venue
New York. New York 10103&0256
Dear Mr. Tishman:
As per our telephone conversation of September 26, 1994. 1 am ofJ'ering thl: following proposal for
negOliations advisory services li-om your firm:
(1) The services shall consist ofncgoliadng development agreements on behalf of and aCling as
development consu)(anl to the City with regard to the Locws project and [he HeF project
(2) The City Administration and City Anomey each will appoint a .single point pers(,ln to whom
you will repon. From time to time, you will report to and/or meet with The full City
Commig~ion.
(3) The fee for six months or services shaH be cappt!u at $322.000, payable in equal monthly
installments. plus om ofpockcr costs in accordance wilh City travel proceedures.
(4) The services can be terminated by [he City at any time with six weeks notice. In the event
ofsu{,;h t~nnination. your fee will be prorated as ofth~ dale of the Clly's termination lener,
plus six weeks.
(5) If more than liix months arc necessary to complete negotia.tions with regard to cilh~r orboth
t)(' the hotel projects, the extension of your contracl must be brought back before the Miami
Beach City Commission t'br approval. rf lhe conrrac[ is ~l(tendcd beyond si~ months. lhe
monthly fee tor each of the tollowing monUls up to six months "",ill be the: fee paid the prior
month minus 1.5% of that tee. If additional rime beyond the inirial 12 months is nCl?ded to
cnnclude negotialions. the contract will be renegotiated and pr~g~nt~d l(J the Cily
Commissiun for consideration and approval.l.l that time.
(6) Your fiml's retention is contingent on lh~ resolution of any c<.mflict of interest issues.
10/04/94 09:36 FAX 212 262 0037 TISHMAN
OCT-03-8Q 18'~r F~on' C~V/D~SIGN/H.P. SSRVICSS 10, 3~S 673 7772
141003
PAGE 2
Mr. John Ti~hman
Tishman Hotel Corporation
September 30, 1994
I'agc Two
If you conl.:ur with thcs~ tcrm~ and conditions, pleas(: sign and indit;'ue (he dale on the line below
and return this lener to us. We will then prepare a. rannal contract for execution.
Sincerely.
\ {2k{;~<~otf~
tav.rence Feingold
City Anomey
Roger M. Carlton
City Manager
KMC:jph
~
President & CHO
Tishman Hotel Corporation
10 -<;- C}'-/
._.._.,~"-'.',',.~._.-
Date
CITY OF
MIAMI
BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139
COMMISSION MEMORANDUM NO. :l t.Jl- q l(
TO:
Mayor Seymour Gelber and
Members of the City Commission
DATE:
October 5, 1994
FROM:
Roger M. Carlto
City Manager
Laurence FeingOl~ ~~
City Attorney
SUBJECT:
HOTEL NEGOTIATOR/TISHMAN HOTEL CORPORATION
ADMINISTRATION AND CITY ATTORNEY RECOMMENDATION:
It is recommended that the City Commission and the Redevelopment
Agency Board authorize the Mayor and City Clerk to execute an
agreement for negotiations advisory services with the Tishman Hotel
Corporation,
BACKGROUND
The City Commission and Redevelopment Agency Board, at their
September 22, 1994 Meeting, selected the Tishman Hotel Corporation
from a list of six potential firms to provide negotiations advisory
services to the City relative to the hotel proposals. The
Administration and the City Attorney had discussions with Tishman
Hotel Corporation and they have reached agreement on the basic
terms in costs.
Initially the Tishman Hotel Corporation had proposed their fee
structure based on negotiating solely for the Loews Hotel, The
proposal has been restructured and, for the same fee consideration,
encompasses the negotiations for both the hotels,
CONCLUSION:
Due to the shortness of time, a contract will be prepared and
presented to the Commission in an addendum packet,
RMC:LF/jph
Attachment
;;6
1
AGENDA ITEM
R-l-(l-
DATE ---1 {)-S...q V
5 RICX;ECREST NORTH · SCARSDALE, NEW YORK, 10583 · TELEPHONE & FAX: 914-472-4506
MICHAEL B. MEYER
PROFILE
ExEClJflVE LEVEL NEGOTIATOR WITH STRONG PROJECT MANAGEMENT SKlLLS AND BROAD
KNOWLEDGE OF THE HOSPITALITY INDUSTRY AND AN UNDERSTANDING OF THE INTERESTS
AND PROCESS OF PUBLIC ORGANIZATIONS.
EDUCATION
HARVARD BUSINESS SCHOOL
MBA,1981
OBERLIN COLLEGE
BA, ENGUSH, 1977
EXPERIENCE
PORT AUTIlORfIY OF NEW YORK & NEW JERSEY
MULTI-BILLION DOLLAR AGENCY RESPONSIBLE FOR CONSTRUCTION AND MANAGEMENT OF
TRANSPORTATION INFRASTRUCfURE AND PROMOTION OF TRADE AND COMMERCE IN THE
REGION.
ASSET MANAGER, VISTA HOTEL, 1989 - PRESENT
OWNER'S REPRESENTATIVE DESIGNATED BY THE DIRECTOR OF THE WORLD TRADE
DEPARTMENT WITH FULL RESPONSIBn..ITY FOR ALL FINANCIAL, PHYSICAL, LEGAL AND
INSURANCE ISSUES CONCERNING THE 820 ROOM HOTEL MANAGED BY Hn.. TON
INTERNATIONAL AND OWNED BY THE PORT AUTIlORfIY. THE HOTEL IS AN
INTEGRAL PART OF THE 10 MILLION SQUARE FOOT WORLD TRADE CENTER
COMPLEX.
Group Director, International Business Development Group 1985-1989
Assistant Director, XPORT Trading Company 1982-1985
INTERNATIONAL PROTEINS CORPORATION, FAIRFIELD, N.J.
Assistant to the President, 1981-1982
"',_...
~.e. ~
t.,\"
40
SKILLS & ACHIEVEMENTS
Negotiations and Asset Management
~d negotiations that financially restructured the management agreement for the Vista Hotel and lay the
groundwork for a $30 million renovation, enhanced ownership rights, and an innovative perfonnance
measurement program. Negotiated an agreement with Hilton International generating an additional $6
million for the renovation through a refinancing of the underlying mortgage.
Chair of the Steering Committee, which on a monthly basis is a owner/management forum to review
financial and operational perfonnance, capital projects, and strategic direction of the hotel as well as
annually review and approve budget, market and business plans.
Project Manage~nt
Oversee the $60 plus million renovation/restoration of the hotel. Prior to Port Authority take-over of
construction, acted as program manager for the restoration/renovation efforts at the hotel. Suuctured a
team of leading hospitality consultants for services covering valuation, asset management, strategic
analysis and insurance support for the hotel.
Disaster Management
During and after the bombing of the World Trade Center, handled all emergency relief, press relations,
and personnel issues requiring coordination between Hilton International and the Port Authority.
Spearheaded the multi-million business interruption and property damage claim for both the Vista Hotel
and Windows on the World. Manage and negotiate with various teams consisting of consultants,
internal and external legal counsel. as well as a myriad of adjusters, re-insurers, and retrocessionaires and
corporate directors of Hilton International and the Port Authority.
International Ventures
. Negotiated an $8 million equity joint venture with Ross Bicycles and Shearson ~hman Brothers in
the People's Republic of China.
. Assembled and managed a team that successfully won a World Bank $16 million bid for dredging
equipment to the government of Colombia.
. Awarded an architecture and engineering consulting contract for the Port's Aviation
Depart.Jmnt to assist the design of the $5 billion Kansai airport.
Professional Activities
Feature Speaker at:
. NYUs 15th AnnIud HDSpitali9' lrulllStry "lJIestmmt Omjerm<<
GeorgetoWn University lAw Center's ResCJIi~ the Hotel in
Distress Ctmferenee
An Ernst & Young Partner Symposium
New York Exuutive Women i1l HO$1'it4/ity forum
Teaching Adv_d ClUe Studies Oass at New York University's Master of Science in Tourism and
Travel Management degree program in Fall of 1994.
Guest lecturer at Cornell University's School of Hotel Administration.
Published a series of articles relating to crisis management and the World Trade Center bombing for
Lodging Hospitality magazine.
Completed Hotel Development and Acquisitions and Hotel Valuation courses at NYUs Real Estate
Institute.
r: 4....
i.' ~
Similarities between the Miami Project and Port Authority Responsibilities
. Negotiate on behalf of an owner which is a public entity
. Negotiate financial agreements, management contracts, and on-going ground lease issues
. Negotiate and financially structure major capital expenditures and renovations
. Protect the long term asset value of the investment
. Work environment
Vista Hotel Profile:
Location: World Trade Center, part ofa 10 million square foot commercial complex
Size: 820 rooms~ 22 stories .
Sales: Pre-blast maximum of $50+Million in annual sales
Managment Company: Hilton International
Ground Lease: Port Authority
Leaseholder: 1981: W exler&RosslChicago~ 1982 Kuo HotelslSingapore~ 1989 Port Authority
Hotel Chronology
.l212..
. Port Authority develops the hotel through a ground lease with developer and a hotel
operator under a management agreement establishing the first hotel in lower Manhattan in
over 100 years. The Port gains 50% of the net cashflow as ground rent.
l2ll
. The hotel opens under a 40 year management contract with Hilton International. Hilton
also gains exclusive right to operate food and beverage outlets in the World Trade Center.
1987
. Hilton International acquired by AllegislUnited from TW A
1m
. Ladbrokes of the U.K. acquires ill from Allegis
m2
. The Port purchases the leasehold for strategic reasons from Kuo Hotels for $78 million
after Kuo becomes embroiled in dispute with Hilton.
~ Appointed Owner's Representative to protect and enhance the asset value of the
investment.
~ Convince the Executive Director to pull a $15 million Board resolution to conduct a
renovation. Recognized:
_ drastically changing market environment required a new strategic approach including
substantial capital investment and refurbishment in all areas.
_ existing business arrangement generated an insufficient return to justify the level
of capital investment required.
.'1- 42
t.,"
1990
. Terminated the management agreement with Hilton International after concluding that
Ill's interest in the U.S. was to maintain gateways to its large international overseas hotels
rather than developing assets in the U.S. and that service levels, marketing, and
maintenance were being cut in the face of revenue declines.
. Guided legal staff on resulting litigation.
.l22.l
. Led negotiations to restructure the management which resulted in
new financial structure drastically improving the return on the asset
. $15 million capital for a renovation program
. Enhanced ownership rights (Steering Committee)
. Devised an innovative program of performance standards tied to termination rights
1222-
. Conceived of a re-financing arrangement with the CFO to generate an additional $6
million for an enhancement to the renovation. Generated financial analysis to justify the
capital improvement and negotiated a management agreement supplement with Ill.
.l.22l
. After the bombing of the WTC, fully responsible for the disaster recovery, crisis
management and the business interruption and property insurance claims for the Vista.
. Negotiated three letters of memorandum with Hilton covering the financial disposition of
the claims.
. Negotiated the early tennination of the Windows on the World lease.
1m
. Persuaded the Executive Director and the Board to allow P A take-over the renovation and
restoration construction efforts handled by ill at the hotel.
. Involved in strategic and financial discussions regarding long term disposition of the hotel
asset with Executive Director, CFO and other P A Directors.
. Negotiated a $4.4 million settlement with insurance adjusters for lost profits for a 13
month closure period
Highlights of the 1992 Restructured Management Agreement
_ Mortgage and Reserves are a first charge against Operating Profits
_ Hilton advances $15 million for renovation
. _ Reserves raised to 6% of gross revenues
_ Hilton stands aside its incentive fee for 10 years
_ Hilton subordinates its base management fee to debt service
_ Hilton assumes responsibility for Budget Scope and Schedule for Renovation Project
_ Hilton gives Port Authority Budget, Marketing, Business, and Capital Plan approval
_ Hilton agrees to measurable and enforceable performance standards.
'"
r 43
Reprinted from Lodging Hospitality, July 1994 issue
GIRDING FOR
DISASTER
The lessens of the Vista Hotel bombing.
In January, Lodging Hospi-
tality published Michael
Meyer's eyewitness ac-
count of the 1993 bombing
of the New York Vista Ho-
tel. Here, Meyer trains his
sights on prevention,
Few professionals and businesspeo-
ple would be so irresponsible as to
not prepare a will that covers the
financial and emotional needs of their
families in case of a personal tragedy.
But I suspect that few professionals and
businesspeople have prepared an emer-
gency plan for their businesses or assets
in the event of a disaster.
When disaster strikes, inadequate or
incomplete preparation becomes pain-
fully evident-and costly. These hard
lessons came clear in the immediate af-
termath of the February 26, 1993 bomb-
ing of New York's World Trade Center,
when the staff of the adjacent Vista Hotel
reacted heroically to a very daunting sit-
l,Iation.
The hotel evacuated everyone in less
than 10 minutes and, miraculously, did
not sustain a single fatality. Nevertheless,
certain employees and guests could not
be accounted for.
Loss of the facility's main telephone
switch made it impossible to communi-
cate with management and arrange
emergency recovery services. Cellular
phones could have fetched thousands of
dollars apiece that day.
BY MICHAEL MEYER
-
Drawings illustrating how the hotel
was built were not easily accessible, cre-
ating confusion among the rescue teams.
The major exit from the basement
through the garage could not be used
because of smoke. Staff had to snake its
way through the labyrinth below the
ground of the World Trade Center.
The blast occurred during winter, rob-
bing the building of water, telephone
service and heat. That put the 21-story
hotel in danger of freezing, bursting
pipes and potentially creating millions of
dollars in additional damage.
Disasters are unex-
pected, but good
planning can have an
enormous impact
and help curb dam-
age. What would you
do if your property
suddenly lost elec-
tricity, heat, water or
phone? Loss of these
services, which we
take for granted,
quickly reduces exis-
tence to a fairly prim-
itive level. I strongly
suggest that hotel
owners and opera-
tors take time to de-
velop a disaster re-
covery plan. I offer
the following sugges-
tions:
V Make sure that
building drawings
are available in the
lobby area. As an
added precaution,
keep a separate set of
copies of drawings of the as-built facility
off-site. In addition, create a check-in
procedure to account for all staff and
guests. This should include a back-up
site nearby for registration and emer-
gency operations; staff and help desks
should be positioned near that site. A
telephone recording directing callers to
emergency assistance should be ready
to answer the main hotel phone number.
"'We were fortunate to be in the mid-
dle of a multimillion-dollar renovation
when disaster struck, so the construction
manager and general contractor, who
were on-site, be-
gan emergency re-
pairs immediately.
When this isn't the
case, it makes
sense for the hotel
engineer to de-
velop relationships
with contractors
and vendors in ad-
vance by soliciting
bids for potential
services. Be sure to
keep phone num-
bers handy, includ-
ing home numbers,
if possible.
VCritical finan-
cial and opera-
tional data stored
on computer disk
should be backed
up and stored off-
site. Arrange back-
up computer ser-
vice so necessary
financial transac-
tions can be pro-
.'~_...
. 44
cessed. Computers are the neFYe center
of hotel operations, so lack of back-up
resources after a disaster can severely
hinder your ability to secure standby fi-
nancing from banks or insurers. Off-site
storage ap.d work areas also are critical
for a skeleton staff to run a maintenance
operation.
vDon't overlook the need to main-
tain effective communication with the
press. Don't shortchange your public-re-
lations efforts.
Experts in crisis management say
those preparing a disaster recovery plan
should consider worst-case scenarios for
natural, accidental and deliberate inci-
dents. Train and test for the disasters by
talking through the plan, walking
through the facility on notice and then
walking through it without notice.
I would like to add some personal
comments on the training aspects of dis-
aster planning.
You should protect against people
like me, who tune out during fire drills,
by requiring staff to pass a written test.
For example, I didn't know where the
fire stairwells were and mistakenly
walked into the smoke-filled core of the
trade center.
Staff should be required to know
back-up locations; report-in procedures;
the hotel's emergency telephone num-
ber; and escape routes.
A certification program in disaster re-
sponse, requiring periodic, written re-
certification by means of a written test,
should be created for all employees.
The ability to stage unannounced tests
poses problems for the hospitality indus-
try. I suggest conducting disaster exer-
cises during slow periods, when an area
can be blocked off for that purpose.
Training is one field deserving
scrutiny. Another is insurance.
Before the bombing, I viewed insur-
ance as I viewed tax policy: It was a ne-
cessity, but the details bored me, and I
was happy to find professional support
available when necessary.
My view on insurance has changed; I
have been consumed, even over-
whelmed, by insurance issues. I am
dealing with four major consulting firms,
three different internal departments,
Hilton International (the hotel's manage-
ment company), Hilton International's
executive staff in London and various
insurance adjusters.
Here are some basic questions to con-
sider:
~ Do you know whether you carry
business interruption insurance on your
property?
~ Do you know whether the policy
protects you up to the point of re-
opening, to the point of restoration of
prior business levels, or to the point of
projected business levels?
~Do you know the indemnity period
on the policy?
~Does your policy allow for interim
payments?
Property (or property and damage) in-
surance covers physical assets that are
harmed or destroyed. Typically, these
policies cover replacement cost for both
real property (such as the building and
its systems) and personal prop-
erty (furniture,
computers,
ete.). This is
analogous to
homeowners'
insurance.
Business in-
terruption in-
surance, on the
other hand, cov-
ers continuing
costs and lost
profits of a disas-
ter-impaired busi-
ness. Such policies
can be complex
because they re-
quire formulae for
establishing loss and
the definitions of
continuing expenses.
Also, considerable
subjectivity is involved
in projecting business
levels that might have
existed had disaster not
intervened; the longer
and greater the disrup-
tion, the higher the de-
gree of subjectivity.
The fact that hotels of-
ten are owned by one en-
tity and managed by an-
other can lead to confusion;
owners must protect both
their property and their in-
vestment, so they need both
property insurance and busi-
ness interruption coverage.
Management companies, on
the other hand, are concerned with pro-
tecting profits they derive from a prop-
erty they run but do not own, so they
need business interruption coverage.
Many chains provide a benefit to own-
ers, procuring property insurance at a
lower cost by adding it to their purchase
of a business interruption policy. In such
cases, owner and management company
frequently are named "co-insureds" on
the policy, potentially clouding delin-
eation of each party's interests and re-
sponsibilities.
Following is a list of critical insurance
issues for checking and review:
"""Confirm that you have business in-
terruption insurance.
vDetermine who is responsible for
buying, and submitting claims for, prop-
erty insurance and business interruption
coverage.
vDetermine if insurance procedures
comply with the requirements of the ex-
isting lease, mortgage and management
agreement.
~J.a/tJ
f. ':::;;;~ oj/.~
~'t~J'!::
2.. ~~"tF-
~~
3.J/aD8
~
~~
Ii.~~
vDetermine
who is responsible for restor-
ing the property in the event of a loss.
vMake sure you have copies of the
insurance policy or policies in your pos-
session.
vReview the policy limit levels annu-
ally. Do the same for the indemnity pe-
riod of your business-interruption pol-
icy.
vEstablish an insurance emergency
command team now.
vDevelop a protocol with adjusters
to expedite the processing of claims.
vTry to get the adjusters to agree on
your plans for reconstruction, as well as
the money you'll need during shut-
down.
vKeep logs for all correspondence
and oral communicati~ LH
I 45
Copyright @ 1994 by Penton Publishing, Inc., Cleveland, Ohio 44114
THE
ACCOUN.T,
1
!
l
j
'!
1
j
j
It was shortly after noon last February
26 when an enormous explosion
shook the World Trade Center
(WfC) in lower Manhattan. I and a law-
yer were sitting on the 36th floor of the
complex discussing a consultant con-
tract for the New York Vista Hotel.
When the explosion hit, I looked out
of the windows of the west side of the
building and saw the skin of the Ameri-
can Express building across the street in
the World Financial Center shake and
ripple, A puff of smoke rose from the
parking ramps below, but I saw no other
sign of disturbance.
I scoffed at the suggestion a bomb had
burst. Only nuclear bombs were that
powerful, I said, assuming something
had happened in the Port Authority
Trans Hudson (PATH) rail line that ter-
minates below the trade center.
When I walked to the north side of the
building to peer at the hotel below, I
saw smoke billowing and noticed that
firefighting vehicles had arrived. A
blood-stained body was seen on a ramp
heading to the trade center's under-
ground parking lot.
When I ran to get my coat on the 35th
floor, I saw smoke coming from the cen-
tral corridor servicing the elevators. I
rushed into the corridor, only to find it
so full of smoke that I could not see my
hand in front of my face.
I retreated to my office, eventually
making my way to one of the two stair-
. wells that run up the center tower. It was
jammed with people and strangely quiet.
I thought I should go up rather than
down, but since movement was slow, I
decided to go with the crowd.
When I encountered a woman in a
wheelchair who works on our floor, I re-
lieved one of the men carrying her. But
the weight of woman and chair impeded
the flow of people; I was separated from
the woman in the wheelchair later,
THE
CONTEXT,
The explosion drove through six stories
of the World Trade Center.
when I and some other people went to
the other end of the building with its
less smoke-infested stairwell.
The smoke thickened as we neared
the bottom floor, but nobody was pan-
icking, because at this point, lights were
still on and there was movement indicat-
ing evacuation going on below. Near
the 10th floor, we encountered firemen
making their way up the stairs, adminis-
tering oxygen to people.
Perhaps the most frightening aspect
of the evacuation was that when we fi-
nally reached the lobby, the smoke was
so thick that if there had not been a line
of police with flashlights, I might never
have found the front door. I'm sure I
wasn't the only one talking to himself to
stay calm.
About an hour after the explosion,
THE
LESSON
people were being led to ambulances. I
ran to the Vista and was relieved to learn
that the building had been evacuated in
the first 10 minutes. A room-to-room
search failed to turn up any bodies, but
we were told that a woman was trapped
in the underground parking lot. She was
rescued several hours later.
West Street, meanwhile, was clogged
by hundreds of emergency vehicles. At a
rescue staging area set up on the street, I
learned that the cause of the explosion
remained unknown.
Overloaded emergency channels
made communication between rescuers
difficult. Radio stations were broadcast-
ing all sorts of misinformation about
bombings and fires, based on communi-
cation with people in the tower. As I
stood on the street, I heard muffled
pinging sounds: glass fragments hitting
the pavement from windows smashed
by trapped office workers. Helicopters
were flying overhead and dozens of re-
porters were amassing.
Inside the lobby of the Vista was total
mayhem. A fire chief grabbed me and
asked for help in gaining access to the
trade center itself through the Vista base-
ment within the trade center subgrade.
The hotel engineer went to get the
building drawings. He and his staff had
narrowly escaped death when they ran
from their offices through smoke and
just missed plunging through a gaping
hole in the slab just outside their door.
A s evening fell, the bodies of four
.L1.Port Authority workers were discov-
ered, removed through the Vista lobby
and placed in a makeshift morgue in a
section of the hotel lobby.
Leaking fire hoses flooded the lobby,
where scores of police and firemen were
gathered. Meanwhile, Port Authority
staff converged with city officials and
rescue agency personnel in the Vista
ballroom.
,....
46
( realized we would need to feed
these people, so I contacted the. general
manager of a nearby Marriott, who was
extraordinarily supportive. I dispatched
a crew to the Marriott to bring back all
the food that hotel could offer; in spite
of several planned weekend functions,
the Marriott gave us all the food we
needed. I also requested the Marriott re-
serve as many rooms as possible for us.
At the same time, Vista staff was trying
to cope with its own problems. At a
nearby street comer, hotel officials were
trying to figure out the staff count, but
some employees were missing and it
would be days before we knew whether
they were dead or alive.
Some guests were diverted to other
hotels. Many, however, were strandt::d
because they had lost their belongings in
the Vista and had no other means of
support. These guests, along with key
Vista staff, were booked into the Hotel
Millenium across the street.
Late that evening, engineers appre-
hensive about the structural integrity of
the hotel told us to evacuate the ball-
room immediately. Plans were drawn up
to begin bracing the overstressed
columns the very next day.
Since the Marriott had only a limited
number of rooms, I doubled up Port Au-
thority staff and contractors. I also ar-
ranged a meeting room where the Vista's
executive director could hold the first of
more than 30 news conferences in the
morning. At about 1 a.m., I finally took a
shower (one of three needed to get the
smoke off my skin) and caught a few
hours' sleep.
Early next morning, the Port Authority
held its first news conference. Re-
porters wanted to know particulars of
the disaster: what it was, who was re-
!",.w_~-.., "_""'.
,:-.:,:i:~~, --,.
The blast ripped up the floor of a reception room known as the Liberty Room.
sponsible, how it happened, why
backup systems failed, when the trade
center's Twin Towers would reopen,
when PATH would run again, what ac-
tion the Authority was taking. Major ten-
ants pressed to know when they could
regain access to offices and whether
they could return to work on Monday.
Separately, hotel officials faced similar
questions from staff and guests: When
would the hotel reopen? When could
guests retrieve property from their
rooms and cars from the garage? Should
staff report to work?
The initial response was reassuring.
Officials expressed hope that operations
in the towers could be restored within
rnro weeks, and in the hotel, a few days.
But within 48 hours, it became clear that
the extensive destruction would necessi-
The intense heat underground affected an area half the size of a football field.
....:.:.>.-.
-'
'.
tate a herculean effort involving thou-
sands of workers and, perhaps, hun-
dreds of millions of dollars. Incredibly,
within three weeks, on March 18, Tower
Two reopened, and on March 29, Tower
One began reoccupancy.
The hotel was less fortunate, Disaster
recovery would be prolonged by dam-
age to the floor slabs around and be-
neath the Vista. These problems could
not be tackled until the contiguous areas
were fixed. In addition, the mechanical
equipment room housing vital hotel sys-
tems would have to be rebuilt.
Within two weeks, Hilton Interna-
tional was forced to indefinitely layoff
approximately 550 Vista workers and
350 from Windows on the World-the
only people the blast threw out of work.
And, while the World Trade Center had
an enormous property claim resulting
from the blast, the hotel's business inter-
ruption claim was far more complex.
Renovation of the hotel's public areas,
slated to begin in early 1993, now had to
incorporate a reconstruction of the facil-
ity. Due to reopen this spring, the Vista
will have a new exterior, a three-story
enhancement to the entrance and a
grand lobby with sweeping staircase and
cascading waterfalls.
For those of us working on restoration
of the Vista, life did not return to normal
last April 1, when the trade center tow-
ers resumed normal operation. We re-
main absorbed by insurance and union
issues, reconstruction problems and
marketing the reopening of the hotel. LH
Micbael Meyer is tbe owners represen-
tativefor tbe New York Vista Hotel. A
graduate of Harvard Business Scbool
and Oberlin College, be bas been pro-
gram manager for the Vista's recovery
since tbe bombing. ",._
,
47
INSIDE TRADE
CENTER CITY
Think of the World Trade Center
(WTC) ~ a city rather than a build-
ing. Its towers sit astride a complex of 12
million square feet that covers eight city
blocks. It was created by the Port Au-
thority more than 20 years ago.
Approximately 50,000 people work
within the wrC. It has been estimated
that nearly 70,000 visit it, and thousands
more commute to it, daily.
The seven-building complex houses
the VISta Hotel, the New Yark Mercantile
Exchange, the New York Cotton Ex-
change and the Coffee, Sugar and Cocoo
Exchange, as well as the Comex, or
commodities exchange, and dozens of
stores. Below gtound are six subgrade
levels, including the Port Authority Trans
Hudson, or PAm, rail terminal, as well
as sev'~ cri.sscrossing subway lines and
statiorlS; truck bays; massive mechanical
....systems .and utility connections; and
. . parkU:lg for viSitors and tenants.
.. . Wb~ it opened in 1981, the VISta was
~ttf1e fust hotel <teveloped in~er Man-
~. battan in 100 years. The P()1't'Authority,
which has a ~Iease for the prop-
erty, ~Icquiredthe;teasehold interest in
1989 as paI1()f:{a strategic plan to rede-
velop thetr3<ie'center. Hilton Interna-
dona! manages tbeVlSta.
~ hotel ~~l~ories, 820 rooms
and~IO,OOO ~;~,xus. It also con-
outer wall of the WfC's north tower. Ex-
ploding with the force of 1,500 pounds
of dynamite, it tore through the parking
garage, blasting the B-2 slab and tons of
other debris down three levels to land
atop giant air-conditioning chillers.
The force of the explosion broke
through the floor of the Vista's Liberty
Room, blew out walls over the PATH
turnStile mezzanine and penetrated five
elevator shafts in the north tower, allow-
ing smoke from the basement fires to
rise through the towers.
The blast carved out a cavern, 120 feet
wide at some points, from the Vista
ground floor down through five sub-
grade floors. Although they were at op-
posite ends of the blast area and sepa-
rated by three floors, the main electric
lines and emergency power generators
were disabled. Also knocked out: the
building command center and systems
.;J-or communicating with people in the
"towers.
On the &,1 level.. the blast destroyed
locker r()()ms. and~ perstIDnefioffice. the cornmissaty,killing the four Port Au-
This level was. extensive!ydaiDagedby thoritj w6rkCJ;Sand crippling the police
the bomb. Miraculously, nQt . thE: 'cOmmand.~.In addition. the 3,700-
estimated '130. hotel . crt400'clegreeheat:'~e.bomb ~ted .bf1rst
guests on h<<>tel' . '. " . 'ofcius.~~a~l>gra~fueiil~g
thebl3st~)dlted." .... ". . 200 snpPlj:s m a Cortfiiled
~lex.sixpeople~,areaha~ " ;&-:i:~field.:;~:,>i'
Authority operations peJsonnel; . ." The '.' . ~on. to prun,ary
InterIlational employee and. ~wrc<Visi'- and . .'. ... .... . .. '.. .lJtility and~~sys-
tor. Another 1,000 wereinjured,...ma.in.It . ...~,,~l<>tigWitllinjurie.st~'opera~g
from smoke inbalatioa ... ........ .' .<.>statr~~nt thatemergemj\~cuat:iOJl
The bomb went o!f~aramp at~' ';'in ." . often ~~.~~ nofl,e
'B-2.levclbetweeri'lbe:Vlstaan4~;' ... " ;.< ..... ;';;,J':<~:i:,;t.:,;,;:\U
tains three restaurants and an executive
fitness center on the top floor. A pre-
function space complements the large
ballroom, and a reception room called
the Liberty Room sits two stories above
the site of the explosion.
The basement, or B-1 level, contains
the parking lot; the hotel's principal me-
chanical equipment room; the engineer
area; the laundry room; purchasing and
receiving; housekeeping; a cafeteria,
The towers of the World Trade Center .
hover over the VIsta Hotel, at center.
CRIItIN&.....cLAIlf[Y
AMID CONFUSION
D i1iasters create both crisis and op-
portunity;;and the fate of a com-
pany or individual depends on the re-
sponse.
Thf' first 48 hours following the World
Trade Center bombing were critical, es-
sentially determining whether we would
receive positive or negative coverage as
well as political support.
The Port Authority has been ap-
plauded for its crisis management fol-
10wil1lg the bombing. It also benefits
from a newly educated public, now less
likely to confuse the Authority with city
or state agencies. Several factors con-
tributc:d to our success. One of the most
critical decisions was to allow the press
aCCesli to the blast site and to the emer-
gency command center set up overnight.
This allowed the world to see the magni-
bJde of the problem-and the response.
A second important decision was to
".,:";":,~,;;;,/;.:>::f~.."F',' <,' ,', ' ":"',:~n;~-1;:<>:':<:""":>:",:":'d'~/;f-i~~g7:~::'
hoktaaily neWs conferences at.it a.m..
a primary news-~~time."I'hisal-
lowed us to establish credibility with
worldwide preSs as the key ~.()f in-
formation aboutthe.~.'t'"";;,.' . .
The immediate f~!:\;Y~,. to eStablish
critical points' about tbeboi:nbiJ1g. Al-
though there was tremendoUs Confusion
in the aftermath, we affmned that the
tower buildings remained structurally
sound and loss of life, though tragic, was
limited. The explosion had de:uly been
caused by some external force;
An important aspect of my job was to
coordinate press management between
the Port Authority and Hilton Interna-
tional. Here are some observations:
. Prior to a crisis that brings press rep-
resentatives to your hotel, select three
management representatives as key
spokespeople. Go over each scenario,
try to anticipate how best to handle it
and develop the appropriate response.
. Select two people for each situation;
one can handle the event in case the
other is unavailable. Identify resources
to call upon in a crisis. Many lodging
:~/';',:':}~".
.~, ',j' ,,~>: }:~;::;.~~rfrli':
~~t~a;
. 'largeP\1blicr~.',
lations firm, but
there can bean
advaJltage to
avoidillg the
use of slick out-
siders who
arouse suspi-
don or leave re-
porters cold.
. During the
crisis, face prob- Meyer: Don't lie, end
lems directly be understandable.
and as quickly
as possible.
· Do not lie. Be natural, and talk in un-
derstandable tenos.
. Give out as much information as
possible, get the facts straight and be
prepared to answer questions.
. Assess areas over which you have
control and ones others should oversee.
Detennine what constituencies you must
communicate with-and how to do that.
Consult key players before public state-
ments are made or actions are taken. II
Copyright c 1993 by Penton Publishing, Inc., Cleveland, Ohio 44114
J';-
I 48
OFFICE OF THE CITY ATTORNEY
~ ifJlUum; 1/mM
F
L
o
R
o
A
CITY ATTORNEY
p. 0 BOX 0
MIAMI BEACH, FLORIDA 33119-2032
TELEPHONE (305) 673-7470
TELECOPY (305) 673-7002
LAURENCE FEINGOLD
COMMISSION MEMORANDUM NO. ~
DATE: OCTOBER 5, 1994
TO:
FROM:
MAYOR SEYMOUR GELBER
MEMBERS OF THE CITY COMMISSION
ROGER M. CARLTON, CITY MANAGER
LAURENCE FEINGOLD \0 ~~ /) ~
CITY ATTORNEY '"J~~ ~ ~
LACK OF CONFLICT OF INTEREST REGARDING TISHMAN HOTEL
CORPORATION
SUBJECT:
Tishman Hotel Corporation ("Tishman") has completed the disclosure questionnaire
that my office sent to them on September 26, 1994. Attached hereto is Tishman's
completed disclosure questionnaire, along with a letter attachment that they have sent.
As you can see from the letter, Tishman does not have any current affiliation with Loews
Hotels, Inc. ("Loews"), Forest City Ratner Companies ("Forest City") or HCF Group, Inc.
("HCF"). Although Tishman has certain affiliations with ITT Sheraton Corporation, it is my
opinion that these affiliations would not affect Tishman's role in the hotel project.
Accordingly, I recommend that, based on the disclosure questionnaire and Tishman's
response thereto, the Mayor and City Commission waive any potential conflict of interest
that may exist with regard to Tishman's representation of the City in the Loews/Forest City
and HCF hotel projects.
LF:mr
Attachment
43
AGENDA~R 1 -~ - n
ITEM - at-
DATE \ 0 - 5- CL4-
1700 CONVENTION CENTER DRIVE - FOURTH FLOOR - MIAMI BEACH, FLORIDA 33139
10/03/94 15:13 FAX 212 262 0037
TI SIlMAN
~002
OFFICE OF THE CITY ATTORNEY
~ tlJ1I;omi~
F
L
o
R
D
It.
CITY ATTORNEY
(I
P.O. BOX 0
MIAMI BEACH. FLORIDA 33119-2032
TELEPHONE (305) 873-7470
TELECO"V (305) 673-7002
LAURENCE FEINGOLD
September 26. 1994
Mr. Tom Arasi
Tishman Hotel Corporation
666 Fifth Avenue
38th Floor
New York, NY 10103-0256
RE: DlSCWSURE QUESTIONNAIRE
Dear Tom:
As you know, the Miami Beach City Commission has selected Tishman Hotel Corporation
("TJShmanft) to act as financial negotiator with regard to the hotel projects, subject to negotiating an
acceptable fee and resolution of any conflict of interest issues.
In order to ensure that Tishman does not have any actual or perceived conflicts of interest
with any individual or entity involved in the proc:ess, and to further insure full and complete disclosure
regarding this project, we are aliking Tishman to complete the attached Disclosure Questionnaire.
My office has compiled a list of all individuals and entities whose names appear in and who are
associated with the Loews and Sheraton proposals, That list is attached hereto as Exhibit II A. II
For purposes of this Disclosure Questionnaire, the following definitions apply:
"Relative" is defined as any finher, mother, son, dal.1ghter,lu.1sband, wife, father-in-law,
mother-in-law, son-in-law, daugbtel'-in-Iaw, brother-in-law, sister-in-law, brother, sister, uncle, aunt,
first cousin, nephew, niece, step-mother. step-father, step-son, step-daughter, step-brother. step-
sister, half-brother or half-sister.
"Business entity. is defined as any corporation, partnership, limited partnership,
proprietorship, firm., enterprise, franchi~ association, self-employed individual, or trust, whether
fictitiously named or not, or any other form of entity.
,..
t 50
17nt'1 /""("\NVFNTION CENTER DRIVE - FOURTH FLOOR - MIAMI BEACH, FLORIDA 33139
10/03/94 15:14 FAX 212 262 0037
TI SIDlAN
141 003
Mr. Tom Arasi
Tisbman Hotel Corporation
Page 2
September 26> 1994
"You" and "your" refer to Tisbman Hotel Corporation and all of its principals and
shareholders. as well as all employees ofTishman Hotel Corporation who will be working OD this
project.
Please complete the auaChed Disclosure Questionnaire and return it to the City Attorney's
Office. If you ba'le any questions, please contact me at (305) 673-7470.
v cry trUly,y.oli,? ....,
/ ,/ ,/ /
i~" ~/
\ ~ ~1If3/
tiURENCE FEINGoLV
City Attorney
A1T1ks
cc: Roger M. Carlton
City Manager
Harry Mavrogenes
Asst. City Manager
(c:;\wpdoca~I\1JI9-2&.Itr)
r- 51
_ __ ____ ..........0 ~"IIQT'" 1=1 nOR _ MIAMI BEACH. FLOR\DA 33139
10/03/94 15:14 F.~ 212 262 0037
TI SIDIAN
~oo..
DISCLOSURE OUESTlONNAIRE
1. Have you. individually or in cOIUlcction with any business entity, been directly or
indirectly associated with any person or bm:in~~ entity or had any interest in any business entity listed
in Exhibit n A"7 If so, list the individual or business entity and describe your association or interest.
Yes, please see the attached letter from Linda
Christensen, dated .October 3, 1994.
-,:,
2. Have any of your relatives., individually or in connection with any business entity, been
directly or indirectly associated with any person or business entity or had any interest in any business
entity listed in Exhibit "AI'? If so, list the individual or business entity and descnoe their association
or interest.
No.
5';
,.;.,
10103/94 15:14 FAX 212 262 0037
TI SIlMAN
~005
3. Describe any relationship you or your relatives have. or had in the past, with any of
the following individuals:
Mayor Seymour Gelber
Commissioner Sy Eisenberg
Commissioner Susan Gottlieb
Commissioner Neisen Kasdin
Commissioner Nancy Liebman
Commissioner David Pearlson
Commissioner Martin Shapiro
City Manager Roger Carlton
Assistant City Managers
Mayra ButtaCavoli
Harry Mavrogenes
Dean ~e1ke
Joe Pinon
City Attorney Laurence Feingold
Chief Deputy City Attorney John Dellagloria
Assistant City Attorneys
Valencia Abner
Raul J. Aguila
Martha Diaz
Yolanda Gasalla
Rebecca Henderson
Ke1li V. Myers
Jean Olin
Donald M. Papy
Sheri J. Sack
Sandra W. Schneider
Alexander I. Tacbmes
Debora 1. Turner
Judith L. Weinstein
None.
53
10/03/94 15:14 FAX 212 262 0037
TI SIlMAN
~006
4. List any other information which may be relevant to an actual or perceived conflict of interest.
None.
x
~~.
Thomas AraS1 .
Executive vice President, Finance and Development
Tishman Hotel corporation
';1'
51
10/03/94 15:15 FAX 212 262 0037
TI SIDlAN
141 OOi
LOEWS HOTELS, INC.
SL Moritz Botel Corp.
Loewt Botels.IDC.
aoben J, Housman
Jonalhan M. Tisch
PteStOD Raben TISCh
Jack S. Adler
Charlotte St. Marlin
Karen Jordan
Marc Shapiro
Marcia Rubin
Andrew Myers
Thomas smith
Belaine Aronson WID<<
Harry Talbot
Vmcent DunlCl'Y)'
Sheila Robinson
Alan 1lo8c:
Marian Succoso
RA. Hanmm
John Tbacker
Sbenic Laver-om
Michael frcadl .
t.aurence A. Tisch
Charles D. BcneDsoD
John Bredenw
Bernard Myenoa
Edward 1. Noba
Lester Po11ack
Gloria Il. Sc:ott
Andrew R Tisch
James S. Tasc:b
Kameth Abrams
Gary W. Garson
Robert J, Hausman
Barty Hirsch
Herbert C. Hofman
Jobn J. Kenny
Guy A. Kwaa
Jolm Q, MaJiDo
Stuart B. Opotowsky
Richard E. PiIusa
Roy E. Posner
Dennis Smith
..
CNA IDlu.....ce
Danil CbOOqaoriaa
Lon1Jud Tobacco Comp...,.
BuJcwa Corp.
Diamond M-Odeco Drilling. lac..
55
Robert Rose .
-'-"
EXHIBIT aAa
10/03/94 15:15 FAX 212 262 0037
TI SIlMAN
taJ 008
Fortlt City
Samuel R Miller
NaIhaD Shabn
Albert B. RalDet
Cbarlea A 1tatner
Roaa1d A. Ratner
ThomaS G, Smith
Gmes AE. Stucker
William M. WIITCft
Allan C. Kru1aIc
D, LaytOn McCown
Minu A MoDcheiD
Lawrence YISbmaD
Warren :K. Ornstein
Charles L Pitcock
Scott S. Cowen
JerryV. Jamtt
Brian J. Rabler
JIUIICS A. Rainer
Max Ratner
Hany O. Scbloss. Jr.
Nathan Sbaftm
J Maurice StnJChen
Forest Cit)' East Co~ lAc.
Forest City Land DiYiiioD-SuDrUe Laud Company
Robert F. MoncbeiD
Silver Lakes
Sewn Bridges
Ethan's Green
Summit Park
Stone River and Shawver
"
ionst City ReDtal Propcrtia Corp.
Abc Gelber
Forest City Eaterprises, lac.
Foral City Raideatial Development, lac.
Forest 0.,. rm..a Corporatioa
GDIes A. B. Studtcr
Forat City Tndiac Group-IDe..
Milan Stoymov
Forest Oty Commercial CoDStnldiOD Company, IJIc.
Glen Moenich
Forest CitJ Maule.eat-lDe.
Abe Gdba'
Malk A. Randal
Jack R.. Kuhn
Forest Cit)' Propcrda Carporatioa
Steven P. Alben
56
10/03/94 15:15 FAX 212 262 0037
TI SIlMAN
Forat City RaIDer Compaa)'
Broce Ratner
Max Ratner
paul Travis
James twncr
WiRiam Wal1acc IV
Kevin Mc:CaDn
lloben CanceDiere
Robert Sanna
Jobo Noms
Michad D. Daly
Samuel Miller
Albert Ratner
Bankers Trust COlDpaD'
Gany Qarrabroat
Bruce Habis
creeaberl TraDriC
Manin Rosen
eeatu RooDe)" CODstnlctioD Compall)'
n_c:ra ConstnlctioD
Md)evitt Street Boyil
Morse Diesel
zyscovicla. IDe.
Bernard Zyseovidl. Archit~
-Savillo & Mm. DelIip Studio
Barry Miller
WiIsoD a AJaociatCSt IDterior Design
Trisba Wilson
JDDanI ColISultallU
Randall HiIIiatd
- 'lftIS (l'lidloll BrtJICII SaDduval A Aaaociatcs, 1Dc.)
Jobo R. N'1CIda
Bruce Brosch
Gregory Sandoval
Andrea Cyr
Anne Jacbway
Jose Suarez
Ralph Egut10r
CodiDa Develop..t Corp.
AnPando CodiDa
JOhllSOD " BiggiDI
Joseph S1wkey
141 009
r-
I
5'7
10/03/94 15:15 FAX 212 262 0037
. .
The BO GrooP.IDC.
Marvin Holloway
Peter CaIin
EugCfte Ford. Jr,
Jerry Bailey
Hospitality Valuadon Servica
Thomas O'Neill
Michael R.osenblatt
rrr Shcratoa Corp.
David Procb-WdsoD
rrr Corp.
SheratoD operating Corp.
ShentoD I'ralKbise Corporatioll
Sheratoa )Iud, lac.
Sbentoa Swtcl
SUiaer & Associates, lae.
Yaromir Steiner
Patricia Curry
Banqoe Bouse
John Gerui
Michael Maxwell
John Porges
Alan Pareira
VOA Associates, 1Dc.
Marc Van Steenlandt
CaMn. R Peck
'J1leodore G. Fery
Robb W. Chapin
lADe Pettigrew Wood J(arp
ICobi Karp
TI SHMA..~
I4J 010
SHERATON
'.
Zack, B.--." Poace. Tucker, Kelp A GilleSP~ P .A.
McDevitt Street HovIs, Jac.
Metric Coastnacton. lac.
Tamer COllltnadlon Compa.,
Royal hl.. Botel
.Arthur S. Unger
Sborecrest Hotel
Cyrus Mebr
RCF Corporate AcadCIIIJ
Paul Lambert
r-c
V~
10/03/94 13:25 FAX 212 262 0037
TI SIlMAN
IaI 002
Tishman
Hotel
Corporation
October 3, 1994
Laurence Feingold, Esq.
City Attorney
City of :Miami Beach
1700 Convention Center Drive
Miami Beach, Florida 33139
Re: .Miami Beach Convention Center Project
DearMr, Feingold:
As General Counsel ofTishman Hotel Corporation, I have been asked to determine
whether any conflict of interest or potential conflict of interest exists between Tishman Hotel
Corporation ("Tishman") and any of the parties involved in the Miami Beach Convention Center
Project (the "Project"). After having reviewed our records and discussed several associations
which we have had with several of the entities involved in the Project. it is my opinion that there
is no existing conflict of interest OT any real potential for substantive conflict of interest betWeen
Tishman and any of the entities involved in the Project.
As you know, ilie developer which has been chosen for development of the Project is a
joint venture composed ofLoews Hotel. Inc. (or an affiliate) ("Loews"] and Forest City Ratner
Companies (or an affiliate) rFCR"]. The City of Miami Beach has also selected HCF Group,
Inc. to develop an Afro-American owned hotel to serve the Convention Center which will be
managed by ITT Sheraton Corporation ("Sheraton"). It is our understanding that Wilson &
Associates and Johnson &. Higgins will also be involved with the Project in some manner. We
have had some involvement with each of these parties other than ReF Group, Inc. Our contact
with these parties has been limited to the following:
}, Wilson &. Associates - Tishman is part of the owning entity of the Walt Disney World
Dolphin and Swan hotels which used the services of Wilson & Associates in the design of these
properties.
2. Johnson &. Higgins - Along with other insurance brokers, Tishman has used the services of
. Johnson &. Higgins in its various business activities.
3, Sheraton - Tisbman has the following involvements with Sheraton:
a.. Tishman is a partner in the owning entity of two hotels managed by Sheraton -- the
Walt Disney World Dolphin and the Sheraton Chicago Hotel &. Towers.
b. Tishman represents the Owner of the Sheraton Meadowlands in New Jersey as Asset
Manager.
59
Tj~hman Hotel COfPOradon 666 Fifth Avenue. New York. NY 10103 (212) 399- 3600 F-dx (212) 397.1316
10/03/94 13:26 FAX 212 262 0037
TI SHllAN
~003
Sheraton is purely hotel operator in these hotels and has no ownership position.
c. As part of its negotiated deal to become operator of the Hotd, Sheraton made a
working capital loan to the ownership entity of the Chicago Sheraton (of which Tishman is pan).
This working capital loan is currently expected to be repaid at the end of this year aooording to
the Owner's projections and is not an unusual provision in an Operating and Management
Agreement.
Since Tishman, in both of its roles as Owner and Asset Manager for the Walt Disney
World Dolphin, the Chicago Sheraton and the Sheraton Meadowlands, has always been in the
position of negotiating for the OWner rather than Sheraton, its negotiations with Sheraton on
behalf of the City of Miami Beach would be no different. Therefore, I see no real potential for
conOict as a result of these contacts with Sheraton.
d. Tishman acts in a different role as Development Manager and Construction Manager
for a Sheraton-affiliate concerning a project in development in Europe. In this role, Tishman was
retained by the Sheraton-affiliate to represent it in the development and construction of this hotel.
Tishman is purely a fee developer for the Sheraton affiliate and has no ownership position in the
hotel. Since this project has not heen formally armounced by Sheraton. it is necessary that this
information be retained in confidence. M a result of Tishman' s various roles in the hotel and
construction industries, many times it has been as opposite ends of the table with a party whom it
previously represented on a different deal. This was the case with Sheraton. In connection with
the Hotels at which Tishman was either an Owner or an Asset Manager, it has been required to
negotiate aggressively against Sheraton. Sheraton, nevertheless, did not hesitate to retain
Tishman to act as Development Manager/Construction Manager for the Hotel Project in Eastem
Europe which I mentioned above.
4. Forest City Ratner - In the past, Tisbman completed two interiors installations for tenants in
Forest City Ratner-developed buildings.
5. Loews --Tishman's only past interaction with Loews occum:d when a Tishman entity was
hired by a private Chicago company (Aerie Hotels & Resorts, Inc.) as its development consultant.
to perform certain development and pre-constru.ction services for a convention hotel to be built on
land adjacent to the newly expanded McCormick Place Convention Center. Among its services
for Aerie, Tishman' s job was to identify several potential hotel franchise organizations for
consideration by Aerie--among them Loews. Aerie, not Tishman. selected Loews. Thereafter,
Aerie requested that Tishman assist in negotiating an affiliation arrangement between Loews and
Aerie. Tishman's role in connection with negotiating the association agreement involved
negotiating against Loews on Aerie's behalf to obtain the most favorable arrangement for Aerie.
Currently, the Aerie proposal is one of many being considered for selection by tbe landwner.
After having considered the nature and extent ofTishman's relationships with the above-
referenced entities, I do not identifY any situation which constitutes a conflict of interest for
Tishman in COIUlection with the Project.
60
10/03/94 13:26 FAX 212 262 0037
II SIlMAN
raJ 004
If you would like fUrther infonnation with regard to any of the above-referenced items.
please feel free to call me.
Very truly yours,
TISHMAN HOTEL CORPORATION
dJtL
Linda Christensen
General Counsel
------ .
lie
61