83-17484
r- . ,:
ir.r-uII~1~&
,-
RESOLUTION NO.
83-17484
A RESOLUTION OF THE CITY COMMISSION OF THE
CITY OF MIAMI BEACH AUTHORIZING THE EXTENSION
FROM JULY 20, 1983 THROUGH DECEMBER 31, 1983
OF CERTAIN LIMITATIONS SET FORTH IN THE LEASE
AND AGREEMENT FOR PRIVATE DEVELOPMENT BETWEEN
THE CITY OF MIAMI BEACH AND' REYNOLDS
CONSTRUCTION COMPANY AND AUTHORIZING THE MAYOR
AND CITY CLERK TO EXECUTE SAME.
WHEREAS, the City of Miami Beach is desirous of having a
facility such as the proposed Miami Beach Convention Center Hotel
Complex, the adjacent Retail and Off ice Complex, as descr ibed by
the Lease and Agreement for Private Development (hereafter
referred to as the "Agreement"), dated May 12, 1982 between
Reynolds Construction Company and the City of Miami Beach; and
WHEREAS, the developer since the May 12, 1982 Agreement was
executed has been engaged in reviewing studies regarding the
feasibility of the proposed project, establishing working groups
on engineering and financing for the proposed project, and
meeting with potential investors, lenders and operators for the
project; and
WHEREAS the City of Miami Beach is aware
Construction Company has requested add'i tional time
requisite funds to construct this project; and
that Reynolds
to secure the
WHEREAS, the City is progressing with its plans to expand the
Miami Beach Convention Center and is acting in good faith by
granting Reynods Construction Company this additional extension;
and
WHEREAS, the City commission has determined that an extension
of the time limitations set forth in the May 12, 1982 Agreement
should be granted to Reynolds Construction Company to effectuate
the performance of the Agreement by securing the necessary
financing to construct this proposed project, which project is in
the best interest of the City of Miami Beach,
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA:
1. That the City of Miami Beach hereby grants extensions
commencing September 21, 1983 up to and including December 31,
1983 in regard to the following time limitations set forth below,
which are contained in the Agreement dated May 12, 1982 between
the City and Reynolds Construction Company; provided, however,
that if Reynolds Construction Company does not secure' the funds
required by Section 7.2 of the Agreement and notify the City that
it has secured these funds on or before September 21, 1983, that
all other extensions provided for by this Resolution shall have no
force or effect and shall be deemed null and void.
a. That Reynolds Construction Company is granted until
December 31, 1983 pursuant to Section 7.2 of the
Agreement to inform the City that it has secured
sufficient funds to construct the first complexes;
b. That Reynolds Construction Company is granted no later
than twelve (12) months from December 31, 1983 to submit
all Design Development Plans required by Section 4.3 of
the Agreement;
c. That Reynolds Construction Company is granted not more
than one hundred eighty (180) days after the approval
of the City of Design Development plans, pursuant to the
extensions granted by this ReSOlution, to submit all
contracts or sub-contracts for construction of
improvements for the project as provided for in Section
4.8 of the Agreement;
f'll:l:lrf" f'll: TlH ('IT\' ."l.'T".-IHNFY 170n l.C"NVfNTlON C'( NTfR OR1VF MIAMI nr ACH r l(lHIOA Y1119
,
d. That Reynolds Construction Company is granted no later
than six (6) months from the approval (s) of the Design
Development Plans referred to in Section 4.8 of the
Agreement to diligently prosecute to completion the
development of the premises through the construction
thereof as set forth in Section 4.10 of the Agreement.
e. That Reynolds Construction Company is granted not later
than thirty (30) days to enter into a management
contract for the hotel as set forth in Section 6.1 of
the Agreement, which thirty (30) days shall commence
after Reynolds Construction Company has performed all
condi tions precedent to commencement of construction as
required by Section 4.9 of the Agreement, all of which
conditions shall be done not later than six (6) months
from approval of the Design Development Plans and any
changes thereto as required by the Agreement.
2. That the City Commission of the Ci ty of Miami Beach
hereby approves of these extensions as set forth herein and
authorizes the Mayor and City Clerk to execute this Resolution
providing for same.
PASSED and ADOPTED this
21st
day of
September
,
1983.
/.'
</ ~
-- >~/,- ~--/
// ".ciC'-~- ~
MAYOR
ATTEST:
~~~
CITY CLERK
APPROVED AS TO FORM:
~FL~
LEGAL DEPARTMENT
DATED
9-dO- 8'" ~
RESR/jhd
9203A
-2-
r.r-~,,...r nr Tur rlTV ^TTnUfo.Jf v ''7f'Yl rnNVfNTlON rrNTfR nnlVf MIAMI fiFACH. flORIOA 31nq
~ ~ 1IttaHd ~ead
FLORIDA
33139
"V AC A TIONL.4NLJ U. S. A. ..
OFFICE OF THE CITY MANAGER
ROB W. PARKINS
CITY MANAGER
CITY HALL
1700 CONVENTION CENTER DRIVE
TELEPHONE: 673.7010
COMMISSION MEMORANDUM NO.
{;'.:1,J -;23
DATE:
September 21, 1983
FROM:
Rob W. Parki s
City Manager
TO:
SUBJECT:
EXTENSION OF CONVENTION CENTER HOTEL COMPLEX
LEASE AGREEMENT FOR PRIVATE DEVELOPMENT
On July 20, 1983 the Miami Beach City Commission passed Resolution No. 83-17429
extending from July 20, 1983 through September 21, 1983 the Convention Center Hotel
Complex Lease Agreement and setting certain conditions that Reynolds Construction
Company must address by the August 19, 1983 extension date. On July 27, 1983 the City
Manager notified Reynolds Construction Company of the following conditions:
I. That the Hotel Development Feasibility Study prepared by Laventhol and
Horwath be supplied to the City;
2. That Reynolds Construction Company supply a commitment to participate in
the R.F.P. for the Convention Center expansion/hotel project; or, in the
alternative,. a commitment to participate in the expansion of the Center
with a concurrent commitment to construct the currently proposed hotel.
All of this may be made contingent upon the City securing public sector
financing based upon the 2% bond proposal pending a November approval, or
a 3% tax proposed to' be levied by Metropolitan Dade County;
3. That Reynolds Construction Company commit to participate up to 100% in
the site preparation for the original hotel; and
4. That Reynolds Construction Company supply a Hold Harmless Assurance for
the City should the original project not be brought to fruition.
On August 9, 1983 Reynolds Construction Company responded:
I. Providing a copy of the Laventholand Horwath feasibility study;
2. Agreeing to commit to the City. to participate in the bidding process for the
expansion of the Convention Center;
3. Declining to assume responsibility for site preparation costs but agreeing to .
offer the' City interim financing for the site preparation costs for the
Convention Center Hotel.
4. Agreeing to exchange general releases if Reynolds is unable to proceed in
accordance with the terms of the agreement.
continued... .
02;
AG~~~ P. -R -IE .
DATE 9'-:7/-8.3
.
COMMISSOIN MEMORANDUM
PAGE TWO
SEPTEMBER 21, 1983
Additonally, Reynolds .Construction Company expressly renewed their commitment to abide
by the terms of the agreement and urged the City to move forward on the Convention
Center expansion. The City Administration, together with the assistance of the Miami
Beach Chamber of Commerce, has appeared before the Dade County Board of County
Commissioners' Finance Committee to obtain support for County funding of an expansion of
the Convention Center. County Commissioners present at the meeting stated they expect
the Dade County Commission, on September 20, 1983, to vote on first reading in support of
a County-wide tax to be used to fund the Convention Center expansion and to expedite the
second reading ahead of the customary six weeks interim period.
ADMINISTRATION RECOMMENDATION:
Based upon the uncertain date wherein funding for the necessary Convention Center
expansion might be finalized, and the additional commitments made by Reynolds
Construction Company, the Administration recommends that the City Commission extend
the Convention Center Hotel Complex Lease Agreement from September 21, 1983 to
December 31, 1983.
RWP:RSL:gjg
Attachments
02
FLORIDA
33119
"" ACA TlONLAND
U. S. A."
OFFICE Of THE CITY MA"'AGER
ROB W, PARKINS
CITY MANAGER
CITY HALL
'100 CONVENTION CE NTER DRIVE
TElEPHONE: 6737010
VIA FEDERAL EXPRESS
July 27,1983
Mr. Shmuel Erner
Executive Vice-President
Reynolds Construction Company
635 Madi~on Avenue
New York, New York] 0022
Dear Shmuel,
Due to an irrecoflcilClbJe conflict and the City's annual budget schedule, I will be unable to
travel to New York as I had hoped.
With reference to the proposed Commission Action extending your contract to December 31,
1983, it will be necessary to have the following information prior to August 19, 1983 for the
September 21 Commission meeting.
I. A copy of the Laventhal and Horvath Study.
2. A cornmitnlent JO ,parfic:ipate in the RFP for the Convention Center
expansion/hotel project; or, in the alternative, a commitment. to
partlCJpClte in the expansion of the Center with a concurrent
commitment to construct the currently propo~ed hotel. All of this may
be made contingent upon the' City s('>curing public sector financing
ba~ed upon the 2% bond proposal pending a November approval, or a 3%
tax proposed to be levied by Metropolitan Dade County.
3. A commitment to participate up to 100% in the site preparation for the
original hotel.
4. A hold-harmless 3ssurance for the City should the original project not
be brought to fruition.
continued.,.
03
.
,
Mr. Sh'muel Erner
.
-2-
July 27, 1983
Once the requeslcd information is received, J am sure the Commission will be in a posilion
to consider favorably your request for extension and the project will continue its progress
toward a successful conclusion.
Again, J looked forward to meeting with you in New York and anlicipatecontinued .
cooperation and the favorable resolution of all of our concerns.
R WP:gjg
cc: Mayor ;;nd Members of the City Commission
Lucia A. Dougherty, City Atlorney
. ';~'
04
t....:;:"..;:?t...-.'. .....~.u""K...f:-' '. -..,-.,,~..l-~~..u - .-..."";..i.to....r~_.L.::l.)._.:..:.::...:;r-...-;
,
REYNOLDS CONSTRUCTION COMPANY
....
--..,................
----
..
6.'15 MADISON AYENUE
~ NEW YORK, NEW YORK 10022
:....1.1.. IIEYHOCOH.T
TELf.PHONEI U12.1 421.81570
August 9, 1983
Mr. Rob W. Parkins
Ci ty Manager
City of Miami Beach
1700 Convention Center Drive
Miami Beach, Florida 33139
D~ar Mr. Parkins:
Reference is made to your July 29th letter to me.
I sincerely regret that you were forced to cancel your trip to New York.
I hope that in the very near future we will have an opportunity to get
together.
In reply to your letter I wish to answer each item separately.
A) As to the Laventhol & Horwath study, our office mailed a copy of
this report to the City many months ago. Nevertheless, I enclose
two (2) additional copies for your review. To reiterate our previous
'request, please send us a copy of your Laventhol & Horwath study of
the Convention Center expansion.
B) As to item 2 which has many sub-sectionS, please be advised of the
following:
1. We are prepared to commit to the City to participate in the
bidding process for the expansion of the Convention Center.
2. In regard to the commitment to construct the proposed hotel for
which the City and our Company have a binding Agree~ent, we renew
our commitment to abide by the terms contained in said Agreement
for Private Development dated May 12, 1982, as amended by the
Resolutions of the City Commission of the City of ~liami Beach. In
this connection Reynolds must reiterate the vital i~portance of
the City taking all the necessary steps to secure the funding of
the Convention Center expansion, and committing to a firm time
schedule for the commencement and completion of the Convention
Center. Both of these steps are crucial in order for this project
to become a reality. We recognize that this corr~itment by the
City is contingent upon the City obtaining various COrmlitments
from the public in the form of certain tax proposals nOl, being
considered.
05
II .L . ., \l l- ,. <oJ v...... '"' . .. .., ... . . v,.. v ~,.. . . ... . .
.
Mr: Rob ,arkins
C) As to item 3, we are certain that the City recognizes that the site
preparation in question involves the expenditure of approximately
$4 - 5 Million. For the City to ask us to assume this expense in
order to obtain an additional gO-day extension is absolutely
unacceptable and unrealistic.
Nevertheless, as we stated in our letter to you of July 14, 1983,
should we be awarded the Convention Center expansion, we will be
willing to look into the matter of obtaining interim financing for
the City required for the preparation of the site for the hotel
project according to the existing City's obligations.
D) As to item 4, we would agree to exchange General Releases with the
City of Miami Beach if Reynolds was not able to proceed in accordance
with the terms of its Agreement with the City, as amended.
As we have previously advised you we are actively discussing this project
with several major international hotel operators. The chances of negotiating
and executing an agreement with one of them is contingent upon, among other
things, the results of the November elections regarding the tax proposals to
be voted upon.
I would like to remind you that during the past two (2) years, even before
Reynolds had a signed Agreement with the City, and solely on the basis of
good faith, we expanded many hours and considerable sums of money to explore
the project with the City. Since that date it is a matter of public record
that Reynolds has incurred hundreds of thousand of dollars of costs and
expenses in order to bring this project to fruition. We again now ask the
City to express its good faith towards the project by granting to our company
an extension of time until December 31, 1983 so we may continue our efforts
to bring a convention center hotel to Miami Beach.
I trust that the above responds to your request and that the Corrmission
issues our requested extension for the project. Reynolds remains ready to
meet either in New York or Florida in order to resolve any issues which
might be raised.
Sincerely yours,
REYNOLDS CONSTRUCTI ON COfolPANY
S.
E
...---------
Vice President
cc: Mayor and t'lembers of the City Commission
Lucia A. Dougherty, City Attorney
v6
~ -ref P- - (; ~
'e3 AIJG ~5"'~H 1 41 m ~
REAlTO'" /:
MIAm:'BEACH BOARD OF R ALTORS
,&~./td ?lttaHd 'Ce4d
"'2'" L1NCOL~ ROAP MALL
ML....MI BE....CH. FLORIDA 3313", . TELE.PI"lONE ~31-7"'7"
I'..,~, ", H ' ,
".., ~, ,.. ,
..", H "^.,
t.. ',' '~I ".., ""1 ~'r.1 ..,
August 23, 1983
The Hororabl", Norman C:Urent
Mayor, City of Miami Beach
1700 CoINention center Drive
~~ami Beach, Florida 33139
Hororable Sir:
The ~.iami Beach Board of REALTORS, representing CNer 500 REALTORS and I1EALTOR-
Associates woo earn their living in this o::nU"olunit.y, desire to express their
serious concern r8;jarding present coIrli tions in our City.
It is ol.Nious, we think, tbat tm str€ngtb of the chllar against foreign
currencies has seriously affected the tourist industry, which is our life
blood.
Your efforts in connection with the Reynolds Ccnpany project, presents a very
brigbt spot and otherwise gloomy situation.
We are deeply concerned that the City Comnission has seen fit to grant Reynolds
only a 60 days "xtention of .tl"",i" opt i ','" rdther: than the six rrontb IX'rioej whi c-h
was requested.
It. is clear Hot if the Reyn..,l&; project could bccune a reality, that tT'any
other worlu-c::ass builders would express interest in building new and large
hotels in ~1iiU,"i. Beach.
Many of our m<..>hers huve been in louc-h wi.th lIajor developers and builders who
have expressed serious interest: in Miomi. Reach, but only if our Conventic,n Hall
facilities are enlargeci to approxirrately 50D,OOD square feet. Obviously, the
r03lily of the Reynolds proposition would aid oU-er developers in obtaining
financing.
We feel certain that the Cannissi on, actin;! with the best of int.entions, but
perhaps wiLh sr:newhat less heac.-to.l:ead experience with builders and devclopcl-s
them our :~'"1.bers, have permitted uninfollll.xJ rlllolic opinion to sway their !.Jetter
gg
AGENDA
ITEM
'K-8- F-.;l.
DA1E~I-'i/~
"
p~" 2
August 23, 1983
'I'lle tionoraLle Nomen Cinent
Mayor, City of Miami !leach
judgment in failing to grant the extra U;;e rB:juest<..>d by the Reynolds COITI>3ny.
There seans little do....nside to exterrlin,] the option until cecanber 31, 1983, and
a great deal of upside potential, if j lldeed during that period the Reynolds
people are able to nove forward.
I ",:mld like to extend an invitation to you and the otl'er O".:mnissioners to
rreet with US for the purpose of discussing ways and rains by which we believe
tJ-e present =ndition of our City could be improved.
Sincerely,
~~~~
Ramon B. Fisch, President
Miami l13eac h Board of RF.AIJIORS
c:c : Mr. F..dward Os her ,
Cha;inran, Advisory Cellini ttce
Miami Ilcach Board of REAL'IDRS
Alex I:aoud, CollT1'issioner
Sy Eisenberg, C.orrmissioner
Malcolm Franberg, Vice Mayor
Dr. Leonard Haber, Cannissioner"
Bruce Singer, Comnissioner
Leonard weinstein, Comnissioner
Elaine 11attbews, City Clerk
Rob Parkins, City Manager
REF/sm
\
99
,..t..l\'I.l~,...
i>:......- '.,,~,..
fJ;:)k1)
,'i:. ...;~..~:
~..~.it--..\C!l,
-"",,&
.
~~ \ ! _ I ~; . ! . . L : I
(;1'7" ......_ ,__r
/?I"S,/
l/'<<r
pt:. ..
I.. r ..
I~...~
0.1
(r
~, .'., ,'(
(,:; l~"'C";;
~IORIDA 139
'TACATlO,,"'lANlJ (' S .4
fJur l' Q 1.90,'
CIIIZENS ADVISORY BOARD
F(IR cm';~.'u',ITV IMPHOVEMENT
1700 CONVENllON CfNTER O~IVE
TELEPHONE- 673."~SO
July 1 ~,
~ ... ... '"'
_J l.};)
,:laine l:athelvs
City Clerk
Ci ty of ;riami Beach, Florida
1700 Convention Center Drive
::i=i Beach, Florida 33139
!:lear I:iss Hathews:
The meobers of the Citizens jcdvisory Board For Co~c~,,~ity
lmprovenent ,vishes to go on record in favor of the ::esclutio:-:,
granting the reque st of the :.cSr.WL:JS CONSTRUCTI 0;; ;:;0: :?/'2JY ,
to extend their agreenent from July 31, 1983 through Dece~b2r
31. 1983.
\;e urgently request that this letter be read at the Co~"ission
meeting ,,,hen this '-latter is to be discussed and voted on.
.3iI}cerely you_rs,/ ~ /
.6-0' . '/;/ /. /
." ,.... - "../' . ... ....
. _' ,I., , .( "',
//.:; ..../. /(f: i ...,! '--t "." /..
-=D~7.~~-~D /~. USHZ:-t
Che..ir::lCLTl-Ci tizens !~C:visory
L,oard For COmr:luni ty IDprov2~:(:;:"1_t
AGENDA
ITEM
100
1<-~ - E -.3
q-=1J-~3
DATE