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HomeMy WebLinkAboutR-99-0832J-99-965 10/26/99 (D RESOLUTION NO. 0 f 8 00 2 A RESOLUTION OF THE MIAMI CITY COMMISSION AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT NO. 6 TO THE MANAGEMENT AGREEMENT, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, WITH LATIN AMERICAN GOURMET RESTAURANT, INC. ("MANAGEMENT") FOR THE MANAGEMENT, OPERATION AND MAINTENANCE OF THE CONCESSION AREA AT PAUL WALKER PARK, LOCATED AT 46 WEST FLAGLER STREET, MIAMI, FLORIDA, TO PROVIDE FOR: 1) AN ABATEMENT OF THE MANAGEMENT FEE FOR THE PERIOD OF AUGUST 1, 1999 TO JUNE 30, 2000; 2) A DECREASE IN THE MONTHLY PERCENTAGE PAYMENT OF GROSS RECEIPTS FOR THE MANAGEMENT FEE FROM FIFTEEN PERCENT (15%) TO TEN PERCENT (10%); 3) AMENDING THE TERM OF THE MANAGEMENT AGREEMENT FROM TEN (10) YEARS BEGINNING ON NOVEMBER 30, 1995 (THE "EFFECTIVE DATE"), TO A PERIOD OF TEN (10) YEARS COMMENCING ON THE DATE THE CONCESSION OPENS FOR BUSINESS, WHICH SHALL NOT BE LATER THAN MARCH 31, 2000; 4) THE RETURN OF $40,000 TO MANAGEMENT OF THE $100,000 PROCEEDS RECEIVED BY THE CITY FROM A LETTER OF CREDIT PROVIDED BY MANAGEMENT TO THE CITY, WITH THE REMAINING $60,000 PLUS INTEREST TO BE RETAINED BY THE CITY, 5) MANAGEMENT AGREEING TO RELEASE THE CITY FROM ANY AND ALL CLAIMS, SUITS, DAMAGES OR CAUSES OF ACTION ARISING AS A RESULT OF OR RELATING TO COSTS INCURRED BY MANAGEMENT DURING THE CONSTRUCTION PERIOD AND UNTIL THE PARK CONCESSION AREA OPENS FOR BUSINESS, SUBJECT TO THE CITY COMMISSION'S REVIEW OF THE CITY MANAGER'S WRITTEN RECOMMENDATION PRIOR TO THE EXECUTION OF AMENDMENT NO. 6. WHEREAS, on May 29, 1.992, a Management Agreement was executed between the City of Miami and Latin American Gourmet Restaurant, Inc., ("Management") for the management, operation CITY COMMISSION MEETING OF 0 C i 2 6 1999 Resolution No. 4-4 U a 4, and maintenance of the park concession area at Paul Walker Park, located at 46 West Flagler Street, Miami, Florida; and WHEREAS, pursuant to Resolution No. 98-434, adopted April 28, 1998, the City Commission granted Management an extension of the previously set date for opening said park concession area from May 25, 1998 to November 25, 1998, and also required Management to provide the City with a Letter of Credit in the amount of $100,000, payable to the City of Miami if Management failed to complete the construction of the improvements by November 25, 1998; and WHEREAS, Management failed to open for business on or before November 25, 1998; and WHEREAS, on December 2, 1998 the City collected the amount Of $100,000 under the Letter of Credit ("Collected Amount"); and WHEREAS, pursuant to Resolution No. 98-1226, adopted December 8, 1998, the City Commission authorized the City Manager to execute Amendment No. 2 to said Management Agreement, which provided: (1) for an extension of the previously set date for completing construction of improvements and opening the concession area for business from November 25, 1998 to April 1, 1999, (2) that if Management completed the construction of improvements and opened the concession area for business by April 1, 1999, Management shall be entitled to a refund of 2 - $80,000 of the Collected Amount, and (3) that if Management failed to complete the construction of improvements and open the concession area for business by April 1, 1999, the Agreement would automatically terminate without any further action by the City; and WHEREAS, Management failed to complete the construction of said improvements by April 1, 1999; and WHEREAS, as of April 1, 1999, Management had been diligently pursuing the completion of construction at the Property; and WHEREAS, in order to avoid additional delays in the completion of the project, the City Manager executed Amendment No. 3, to said Management Agreement which, pursuant to Resolution No. 99-273, adopted April 27, 1999, provided for: 1) the reinstatement of the Management Agreement, dated May 29, 1992, as amended; 2) an extension of time for the opening of said concession area to June 30, 1999; 3) the City's retention of the Collected Amount until the completion of the construction; 4) the Management's entitlement of up to $50,000 of the Collected Amount in the event the concession area is open for business on or before June 30, 1999, with the remaining $50,000, plus all interest accrued, to be retained by the City; and 5) the City's retention of the Collected Amount and all interest accrued in the event the construction is not completed and the concession area is not open for business on or before June 30, 1999; and WHEREAS, Management advised the City that it would not be able to complete the construction of the improvements and open said concession area for business by June 30, 1999; and WHEREAS, pursuant to Resolution No. 99-460, adopted June 22, 1999, the City Commission authorized the City Manager to execute Amendment No. 4 to said Management Agreement, which provided: (1) for an extension of the previously set date for completing construction of improvements and opening the concession area for business from June 30, 1999 to July 31, 1999, (2) that if Management completed the construction of improvements and opened the concession area for business by July 31, 1999, Management shall be entitled to a refund of $40,000 of the Collected Amount, and (3) that if Management failed to complete the construction of improvements and open the concession area for business by July 31, 1999, the Agreement would automatically terminate without any further action by the City; and WHEREAS, Management advised the City that it would not be able to open the concession area for business by July 31, 1999; and WHEREAS, pursuant to Resolution No. 99-807, adopted October 26, 1999, the City Commission ratified, approved and confirmed the City Manager's execution of Amendment No. 5 to the 4 011- v c5 ej Q Management Agreement with Management, which provided for: 1) the reinstatement of the Management Agreement, dated May 29, 1992, as amended; 2) an extension of time for the opening of said concession area to March 31, 2000; 3) the City's retention of the Collected Amount until the completion of the construction; 4) Management's entitlement to $40,000 of the Collected Amount in the event the concession area is open for business on or before March 31, 2000, with the remaining $60,000, plus all interest accrued, to be deposited in the City's Non -Budgeted Revenues Account; and 5) the City's retention of the Collected Amount and all interest accrued in the event the construction is not completed and the concession area is not open for business on or before March 31, 2000; and WHEREAS, the City and Management agree that Management has incurred substantial and unforeseen construction costs towards the completion of opening the concession for business; and WHEREAS, the City Commission deems it in the best interest to amend the Management Agreement further as provided herein; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Resolution are hereby adopted by reference thereto and incorporated herein as if fully set forth in this Section. Section 2. The City Manager is hereby authorized'-' to execute Amendment No. 6 to the Management Agreement, in a form acceptable to the City Attorney, with Latin American Gourmet Restaurant, Inc. ("Management") for the management, operation and maintenance of the park concession area at Paul Walker Park, located at 46 West Flagler Street, Miami, Florida, to provide for: 1) an abatement of the Management Fee for the period of August 1, 1999 to June 30, 2000; 2) a decrease in the monthly percentage payment of gross receipts for the Management Fee from fifteen percent (15%) to ten percent (1096); 3) amending the term of the Management Agreement from ten (10) years beginning on November 30, 1995 (the "Effective Date"), to a period of ten (10) years commencing on the date the concession opens for business, which shall not be later than March 31, 2000; 4) the return of $40,000 to Management of the $100,000 proceeds received by the City from a Fetter of Credit provided by Management to the City, with the remaining $60,000 plus interest to be retained by the City; 5) Management agreeing to release the City from any and all claims, suits, damages or causes of action arising as the result of or relating to costs incurred by Management during the construction period and until the park concession area opens for �i The herein authorization is further subject to compliance with all requirements that may be imposed by the City Attorney, including but not limited to those prescribed by applicable City Charter and Code provisions. H Q) business, subject to the City Commission's review of the City Manager's written recommendation prior to the execution of Amendment No. 6. Section 3. This Resolution shall become effective immediately upon its adoption and signature of the Mayor Y PASSED AND ADOPTED this 26th day of October . 1999. JOE CAROLLO, MAYOR In accordance with Miami Code Sec. 2-36, since the Mayor did not indicate approval of this legislation by signing it in the designated place provided, said legislaticr 1 becomes effective with the elapse of ten (10) days rom the date of Commissicr i regarding same, without the Mayor a rising a o. ATTEST: Walt J. , City Clerk �.. WALTER J. FOEMAN If the Mayor does not sign this Resolution, it shall become effective at the end of ten calendar days from the date it was passed and adopted. If the Mayor vetoes this Resolution, it shall become effective immediately upon override of the veto by the City Commission.