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Home My WebLink AboutItem #84 - Discussion ItemFPOM WRONGOL.D, BASS & TODD TO 30S 2SS193S 1596 01-23 i LAW OFFICES KRONGOLD and TODD, P.A. EIGHTH FLOOR, 201 ALHAMBRA CIRCLE CORAL GABLES, FLORMA 33134 i I PONCE DE LEON PLAZA i lE�1Cs�Mi[x•l� �'alAZ9T��i �E�E'T i PLEASE DEL*R THE FOLLOWING PAGES TO: NAME; M'. C6sar H. Odio, City Manager FIRM: C}ty If Miami PAX NO: 285-1�35 17.01 4941 P.01/06 TELEPHONE (305) 446-3033 FAX (306) 443.44.69 FROM: M!na Rold Krongold, Esq, I F x RM : K#ONGQLD and TODD, P ..A , RE: C ty of Miami; Miami Arena Contract 0• FILE NO. 5644.1 COMMENTS I I I � TOTAL NUMBEI OFIPAGES: including this cover sheet) DATE: Q� 9G' TIME: I THIS FACSTKXLZ CONTAINS PRIVILEGED AND CONFIDENTIAL INFOR ATION INTENDED ONLY FOR TEM 1TSE OF THE NAND AEOV'E. IF YOU AR9 NOT THE INTENDED RECIPTE�1'.0 OF s4DI39ESSES Ci:[MILE, OR TEE EN;PI,OYEE 6R ACENT RE3PONSIBL$ FOR DELIVERING ST TO THXXTBNDEO RSCTP3E3QT, YOU ARS F=REBY NOTIFIED THAT ANY DISSMINATION OR I COPTING OF TRIS FAC91MXLE IS STRICTLY PROHIBITED. IF YOU I3AVE RECEIVED 1S FACSnaLE IN ERROR, PLEASE tMMEDXATELY NOTIFY US BY TELEPITONE AND YZL3URNITRE ORIGINAL FACSIMILE TO US AT THE ABOVE ADDRESS 'VIA U.S. POSTAL SERVIC3.1THANK YOU. ORIGINAL/COPY wrt FOLLOW ORIGINAL/COPY WILL -NOT FOLLOW IF YOU DO NOT RE IVIt ALL PAGES, PLEM2 CONTACT LIMA. 4 oil Y I r FROH WRONGOLD, SPSS & TODD TO t 305 2951935 159G,01-23 17101 4941 P.02/05 LAW OFFICES KRONGOLA and Tonn, P.A. ' E4GNTH FLOOR, 201 ALHAMBRA CIRCLE I CORAL GABLES, FLORNA 33134 TELEPHONE PONCE DE LEON PI AZA (305) 446-3033 FAX (305) 44S 4469 January 22, 1996 i Mr. Cesar H. io City Manager B of ? himi 4 Pan American Drive Miami, FL 33133 RE: C y of 'amb, NZami Arena Contract Oir FitNo. 5644.1 i Dear Cesar: co of Blaisdell's letter which I unde�tand you have not received F aolosed pleases find �a copy yet and 2ch i� self-explanatory. Y spoke with hai* this -morning and arranged to meet with him on Wednesday at 4:Wr1W. 1i FROM IRRONOOLD, BRSS & TODD TO y` 306�2861835 1996.01-23 17:01 1g941 P.03/06 I Leisure Management international tleven Greenway Plazas, Suiry 3000 h maton, Texas 77046 U.S.A. L (713) 623.4563 Fax (713) U -4134 I VIA FACSIMILE ANQ�tREGU LAR MAll (305) 443-4469 January 19, 1696 M. Ronald iC ngoo, Esq. Krongold & Todd, P.A. 201 Alhambr i Circle, 8th Floor Coral Gables FL 33314 Dear Mr, Kro' gold;! On January 4� 199�, representatives of Decoma Venture (acting as general partner of Decoma, 1 Ltd., + which, in turn, is the general partner of Decoma Miami Associates, Lied. ("DMAL"j) met with representatives of the City of Miami. The meeting was Fall e+ , at the City's request, in furtherance of it Resoltnion adopted by the City Com Issin on November 14, 1995, requesting that all conceivable legal methods be tiizq to ensure that the Miami Heat remains in the City of Miami. During our fftwins, the City's representatives explored the possible purchase by the City of al I of a Decoma interests in the Miami Arena, In our view, these discussions m ere *eful and served bath to better define the City's objective and the collectior of interests and rights (of Decoma and others) that the City would have to acqui�e to achieve that objective. During the c�. urse lof our January 4 meeting, the City asked us to grant the City permission td talk Wrectly to the Miami Heat about an extension of the existing lease, constru ctionIof al new arenk or other alternatives for loping the Heat in Miami, to o�ding to this request, we would remind you that Leisure Management International MK") and the Miami Meat are parties to a L(Cense Agreement d ted arch 2, 19$8, relating to use of the Miami Arena, and the parties have co need discussions with regard to the renewal of such Agreement, Further, the Land Lease Agreement among the City, the Miami Sports and Vxhibitiar Aut iority and PMA,L (the *'ffLease") and the Miami Arena Contract (the "MAC"), leach Idated Wober 2, 1986, prohibit the City from sponsoring, in any manner, fan ahna project which would be in competition with the Miami FROM =KRCNGOLD• BRSS & TODD - TO _ t w_ 30S 29S183S . 1 Mr. Ronald �rong�old January 19, 4 996 i Page 2 ' 199E.01-23 17102 #941 P.04/OS 1 JJ Arena. Ah o, the MAC grants DMAL and its agents various exclusive rights (including t ie right to negotiate agreements for the use of the Miami Arena) designed to rote�t the economic interest of DMAL in the Miami Arena. Although we' are hrindful of the City's objectives, any actipm, by the City and its officials must respect' the contractual rights of LMI, DMAL and Decorna Venture. LMI, DMAL 4nd become Venture believe that any conversotions between the City and the Muni Heat regarding the Miami Arena or any alternative to the Miami Heat remai. ing as a tenant in the Miami Arena would constitpte tortious interference { ith br violation of their respective rights under one or more of the License Agreement, the Lease or the MAC, a breach of covenant thereunder, or both. None{ of LMI, DMAL or Decoma Venture are willing to waive their rights under such Agreements or under applicable law, and if the City of Miami or those acting on itsl behilf interfere with or violate the rights of LMI, DMAL or Decoma Venture and r an� of such Agreements or under applicable law, or breach any covenant th reun er, such parties will vigorously pursue all available remedles to enforce their righti• We are aware th4t discussions between City officials and'representatives of the Miami Heat kind Metropolitan Dade County have occurred, and we urge you to formally advise tht City, and all persons who have conducted such conversations to cease such, conversations. Further, we urge you to caution such persons, or any persons whol in the future may wish to initiate such convetsations (whether such person is a inn in their capacity of a City official or purporting to act in an individual pact ), of the restrictions imposed upon the City and its officials by the applicable agreements and applicable law. In the evont of a breach by the City, its officials dr any other persons of the applicable restrictions or covenants, LMI, DMALi and! Decoma Venture intend to vigorously' pursue all available remedies to'nford� their rights, During our r*etigg on January 4, the City asked Decoma Venture to indicate a price (car pride range) for which Der~oma would be willing to sell Its interests and rights. No I prig was discussed at the meeting, but the Decoma Venture mpresentativ! agrKtd to consider the request and respond. Because we have not offered thosel asses for sale and are not soliciting an offer, we believe that If the City wishes tb purchase Decorna's interests, it should offer a price it believes to be appropriate. (As we stated at the meeting, we believe all of the financial data and other information necessary to assist the City formulating a. proposal to purchase Decoma's irests are readily available to the City from the MSEA and other publie sourc S. if Ithe City makes an offer, we will consider it and advise the City as to whetheri it is 4cceptable. i FROM tkRONGOLD• BASS TODD TO 306 28SIS35 v Mr. Ronald l rongvld i January 19, 1996 i Page 3 19S6.01-23 17103 #941 P.OS/06 i I am available to meet with you and the City to continue discussions if appropriate. Finally, pursuant to a request made at the January 4 meeting, I have enclosed a 'family tree'Ifor DMAL. very truly yours, LEISURE MA�GiMENT INTERNATIONAL )ohn A. Blaisdell President an4 COO cc: J.L. Ph m Ir, Cl C-4rissioner Cesar .O01lo, cit I Ma' alter , City of Miami Rafael O. D az, Ov uty ity Attorney Lael " humI cker, A., istaito the Mayor DMA Pa ers Marsh i Il �u rack, Esq. Howard Aygrs, Esq. i I l- I FROM :KRONGOLD, BASS & TODD TO = 30S 26S1(33S 1956101-23 17:03 #941 P.06-106 DMAL PARTNERSHIP "FAMILY TWA" become Miami A5socijte9 Mr. )orge De Cardenas Ltd, P t 5°!o Mr, Billy Freixas fOM,li,1 Mr, Jesse McCrary Mr. Al Cardenas Mr, Clyde Fattaway BIL Development, Inc, GP 85'/0 i I Decoma Ltd, Main, Inc. (DITD) LP t0°/. 90�'0 Decorra venture i WV9 , I BIL Deve opmertt, INC. Unbeck Mlaml Corporation HSAI ManagemeK Inc. fg) 1 llhlG fHS�? ' i I