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HomeMy WebLinkAboutCC 1996-02-27 Minutesit CITY 0 F son" INC 0 M P.101i M-11 PREPARMSY PiE OFFICE.OF THE CITY CLERK C IV HALL WALTER' FOEhu CITYS�C­LERK INDEX MINUTES OF SPECIAL MEETING February 27,1996 ITEM SUBJECT LEGISLATION PAGE NO. , NO. DISCUSSION CONCERNING: (1) DISCUSSION 1-11 NEGOTIATIONS WITH DECOMA AND 2/27/96 LEISURE MANAGEMENT INTERNATIONAL (LMI) IN CONNECTION WITH THE MIAMI ARENA; AND (2) FUTURE ROLE OF MIAMI SPORTS AND EXHIBITION AUTHORITY (MESA). 4 MINUTES OF SPECIAL MEETING OF THE CITY COMMISSION OF MIAMI, FLORIDA On the 27th day of February, 1996, the City Commission of Miami, Florida, met at its regular meeting place in the City Hall, 3500 Pan American Drive, Miami, Florida in special session for the purpose of discussing negotiations between Decoma, Leisure Management International (LMI), the City of Miami, and the future role of the Miami Sports and Exhibition of Aiitl!Mity. The meeting was called to order at 5:41 p.m. by Mayor Stephen P. Clark with the following members of the Commission found to be present: Mayor Stephen P. Clark Vice Mayor Wifredo Gort Commissioner Joe Carollo Commissioner Miller J. Dawkins _. _. Commissioner J.L. Plummer, Jr. ALSO PRESENT: Cesar Odio, City Manager A. Quinn Jones, III, City Attorney Walter J. Foeman, City Clerk Maria J. Argudin, Assistant City Clerk ---------------------------------------------------------------------------------------------------------------- 1. DISCUSSION CONCERNING: (1) NEGOTIATIONS WITH DECOMA AND LEISURE MANAGEMENT INTERNATIONAL (LMI) IN CONNECTION WITH THE MIAMI ARENA; AND (2) FUTURE ROLE OF MIAMI SPORTS AND EXHIBITION AUTHORITY (MESA). Mayor Clark: All right. Mr. Clerk, ladies and gentlemen, we're in emergency session this afternoon for the simple reason that I want all of my colleagues to know exactly where we stand, and myself, insofar as the negotiations with Decoma. And last year, this Commission appointed a representative to represent the City in negotiations by the name of Commissioner J.L. Plummer, our senior member. Commissioner Plummer: And the Manager. Mayor Clark: And the Manager. And they have proceeded so far, and at this time, I'm going to ask Mr. Plummer to bring us up to date. February 27,1996 Commissioner Plummer: Mr. Mayor, as you requested, and when you made your appointment, as you also must know, that Mr. Ron Krongold is the outside counsel which was hired by the City. And we have had any number of meetings. I don't even remember how many, but I would say it's been at least six or seven meetings, and the last one was last night, very, very late. We have met with Decoma on any number of occasions. And at those meetings were myself, the Manager, Mr. Krongold, in some of them were Christina Cuervo, and in some of them were Leal Schumacher. We have negotiated down to the point of everything but actual dollars. We have talked in these different veins. Number one, that we would buy out Decoma. The area that's still up in the air is the area that Decoma must come back to the City in what they would have in the buyout of the food and beverage. The other area that has not yet been determined is the area of the pending contracts. For example, maintenance, upkeep, security, and we are awaiting from them, and hopefully we will receive tomorrow, a list of those which are outstanding contracts, how much longer they have to run, and how much they are costing Decoma, or would cost us. We are waiting, also, for Decoma to come back to us after last night's meeting and, in fact, they will give us the number which is what they have negotiated out with the company of the food and beverage. That will have a great determination on the total cost of what we pay Decoma. Decoma has demanded, for the purposes of being able to talk with the Heat, that they will want from this Commission on Thursday a binding obligation, if, in fact, we meet on the terms and the dollars that have been set forth, that, in fact, if we are able to negotiate a contract with the Heat, that those monies will be paid to Decoma. Up in the air, because there is nothing definitive at this time, is how they would be paid. Whether it's a lump sum, whether it would be paid out over a period of years, that was negotiable. I don't think anybody had any hard problem with ,...._that-Mgiat.we're basically trying to negotiate with the Heat is an extension of four years. Vice Mayor Gort: Four? Commissioner Plummer: Four years. At such time after that, hopefully... Oh, I'm sorry. Please, let me insist on the fact that Armando Vidal has been absolutely a fantastic individual. All of the meetings, basically, have taken place in his office, and he has served as a mediator, or I don't know what else you would call besides a mediator - a facilitator, OK - and that, in fact, they would be looking at the possibility of building a new facility. That's where it basically stands today. Hopefully, Mr. Mayor, I will have for the Commission tomorrow, awaiting from Decoma, the numbers which have not yet been applied. And basically, it will be three numbers: First, Decoma, what they will receive; second, the number of what the food and beverage, which basically will be in the Decoma number; and third is the present contracts that are still there. Other than that, I must also mention at the last meeting, two meetings, Mr. Joe Portuondo of the Sports Authority, legal counsel, was in attendance at both of those meetings. There were County Attorneys that were there - I don't know the name - and, of course, Mr. Blaisdell, were at these meetings, and his array of legal counsel. I mean, it was more than one - three, three? - two, two. OK. So, Mr. Mayor, that's basically all I can tell you at this time. If you have any questions, I would try to answer them. Basically, it has been an insistence, so that it's nobody's misunderstanding, this is a clean, clean deal. Now, what do I mean by that? What I mean by that is if we will agree on a price, Decoma is out. They are gone, and thank you, good-bye. There's nothing lingering in any way, shape or form, and we've made that as a very clear understanding. I don't think there's any misunderstanding on anybody's part. Mr. Manager, do you or Mr. Krongold have anything that you wish to add, or anything that I have overlooked? Mr. Attorney. A. Quinn Jones, III, Esq. (City Attorney): Yeah. Commissioner, I need to add one thing, because I think I'd be remiss if I didn't. Commissioner Plummer: Please do. Mr. Jones: A couple of weeks ago, you had requested from me an opinion as to whether, in fact, the City could legally buy the Decoma Management Agreement. I did respond to you, and I 2 February 27, 1996 AI would only say to you in the course of negotiations that you're pursuing that any agreement that you come up with, that you make it subject to what happens in the hearing on the non -compete clause. And I say that because if the Court decides that the non -compete clause is invalid, then, of course, the question comes up as to whether, in fact, there is a public purpose at that point that would allow the City to go forth and buy out the Decoma agreement. Because the obvious thing there is that if the non -compete is declared invalid, where you've got competition, whatever, you no longer have necessarily a public purpose for which you would be empowered or authorized to expend twenty million dollars ($20,000,000). So that's the only caveat that I offer. Commissioner Plummer: OK. We are aware of that, and we are looking at a time frame. And Mr. Mayor, one of the things that I should have said from the beginning is that Mr. Arison, not directly to us, but has said it, without question, that something must be concluded within 30 days. We are aware, Mr. Jones, of what you have said to this extent on the time frame, that if we get the number from Decoma tomorrow, this Commission makes a binding obligation on Thursday, really, the lawsuit is out, because that's to be heard on Friday, as we understood. Am I correct in that? Mr. Jones: Yeah. Commissioner Plummer: Yeah. So in other words, that if... we do, we get the numbers tomorrow, the City Commission agrees and makes a binding obligation, then they are giving us the right to meet with the Heat after that, so that would not be in contention at that particular -point—Mr-Manager, do you have anything to add? Mr. Krongold, do you have anything to add? Mr. Mayor, to the best of my knowledge, that brings you up to date. I will conclude by telling you that the minute we get the numbers tomorrow, there will be a copy in each one of your hands for you to carouse overnight, and hopefully, this Commission will make some determination on... Mayor Clark:... Thursday. Commissioner Plummer:... Thursday. Yes, sir. Mayor Clark: Any questions of Mr. Plummer? Vice Mayor Gort: Let me ask a question, Mr. Mayor. Mayor Clark: Yes, sir. Vice Mayor Gort: My understanding is this is subject to the Heat... a four-year contract. Is that correct? Commissioner Plummer: Well, it's without question - that's only a part of it, Willy - that the Heat will commit to a four-year extension of their contract, yes, sir. Mayor Clark: Any further questions? Yes, sir. Commissioner Carollo: I got a couple of questions, Mr. Mayor, if I may. Mayor Clark: All right. Commissioner Carollo: Was there any offers made to Decoma yesterday? Commissioner Plummer: No. 3 February 27, 1996 Commissioner Carollo: OK. No offers were made. Commissioner Plummer: No. No, there was no offers, Joe, simply because they did not have a number in which we were talking. And until such time as we know what the numbers are and how they come about, there's really no offer to be made at that particular time. Commissioner Carollo: So when you say they didn't have a number... (INAUDIBLE COMMENT NO ENTERED INTO THE PUBLIC RECORD) Commissioner Plummer: I'm sorry. Excuse me. (INAUDIBLE COMMENT NOT ENTERED INTO THE PUBLIC RECORD) Commissioner Plummer: Uh-uh. OK. All right. Excuse me. We did make an offer which was refused. Commissioner Carollo: OK. That's what I thought. But... Commissioner Plummer: OK, I'm sorry. I stand corrected. Commissioner Dawkins: What was the number offered? Commissioner Plummer: The number... The number offered was eighteen million for everything. Commissioner Dawkins: OK. Commissioner Plummer: And that number was denied, was turned down. Commissioner Carollo: Now "everything" meant what, exactly, J.L.? Commissioner Plummer: "Everything" meant their involvement, the food and beverage, and the services that yet have been identified. Commissioner Carollo: In other words, all concessions. Commissioner Plummer: That is correct. Commissioner Carollo: Now, when you... Commissioner Plummer: Concessions, yes, Joe, but not the service agreements, such as maintenance, security. Commissioner Carollo: Those have a 30-day clause that they could... Commissioner Plummer: No, not all of them. We were informed that some of them do go longer than 30. Commissioner Carollo: Yeah, but the maintenance that you're talking about and some of the others do. The food concession is a different one. Commissioner Plummer: That's what they're to give us - how much longer the contract has, and how much the contract they're presently paying. 4 February 27, 1996 Commissioner Carollo: Well, the real problem here is the food concession. Now, when you say that they didn't have the numbers, can you explain that more? Commissioner Plummer: Yes, sir. Commissioner Carollo: You mean they came to negotiate with us, and they didn't have a number for us? Commissioner Plummer: I can only tell you what they told me. And their indication to us was that they had to go back to the party who holds the food and beverage, and they would negotiate with them as to a price. Commissioner Carollo: But were they informed beforehand that we were looking to buy out the food concession, also, so that... Commissioner Plummer: They knew from the very beginning that we were looking for a clean deal. Mayor Clark: For some time. For some time. Commissioner Carollo: Well, that's the whole question. In law, there is no such wording as a ..'.'cleanAaal." Commissioner Plummer: OK. Then maybe a "total deal" would be more acceptable... Commissioner Carollo: Well, even... Commissioner Plummer:... but I use it as a "clean deal," where you walk away, and that's it. Commissioner Carollo: Well... Mayor Clark: Any further questions. Commissioner Carollo: On this item, Mr. Mayor, I don't. But I have to make a statement that I've been instructed to by the Sports Authority, once we're done with these issues, that relate to them. But I'll wait until we're done with everything on the agenda for today. Mayor Clark: Well, this meeting was called today strictly for the reason to bring us up to date on that. So anything else would be ancillary. That's up to the Commission to accept. Commissioner Carollo: Well, it has to do with the same issue, Mr. Mayor. It's just to inform you. But it's fine with me if the Commission does not want to hear it. Commissioner Plummer: Well, here again, I would ask if there's any more questions of any of my colleagues. Commissioner Dawkins: Yes. Commissioner Plummer: Commissioner Dawkins. Commissioner Dawkins: What was said... What have we said here? I'm puzzled. I don't know what we said, why we said it, or where we are going. 5 February 27,1996 Commissioner Plummer: Well, sir, let me try to bring you along chronologically. Number one, where we're trying to get to is to buy out Decoma, to get the City in the position of dealing directly with the Heat, and trying to make a deal to keep them in the Miami Arena for at least another four years. Commissioner Dawkins: OK. Commissioner Plummer: What was said is that we have negotiated with Decoma to try and make a clean deal of buying out Decoma, and all ancillary services pertaining to Decoma's operation of the Arena. Commissioner Dawkins: But everybody, in my opinion, appears to be moving forward - West Palm Beach, Broward County - and I expected to come here today and have us - I mean me - have something definite, saying that tomorrow we will meet with Decoma, and we are going to buy them out, because we have agreed to so and so and so, and that we have told Mr. Arison so and so and so, and that on this date, this and this and that will happen. But I come and I find that I'm right back where I was when I walked in here. Commissioner Plummer: Sir, I... Commissioner Dawkins: All I know is we're meeting and that... Sir, that's... No, I'm telling you, "me." Commissioner Plummer: I hear you. Commissioner Dawkins: I hear you. OK? You have to hear me. Commissioner Plummer: I'm listening. Commissioner Dawkins: OK? All I hear is, "We're meeting, we're meeting, we're meeting." For what? Now, if you aren't going to bring this to a head, you should tell Mr. Arison we are not sincere, and go ahead. If we are sincere, let's try to bring this to a head so that at least we - being the City of Miami, the Sports Authority and everybody, and Decoma - look to the rest of the community as if we... as if we really and truly are working hand in hand to keep the Heat here. And I say that to you, Mr. Plummer, because this is a Greater Dade problem. This is not a City of Miami problem. And if everybody in Dade County is sincere about keeping the Heat, then Aventura needs to put some money, Key Biscayne needs to put some money, Hialeah needs to put some money. All these other municipalities, who is Dade County, who benefit from being associated from Dade County, they need to put in some money so that we can get off.. We just can't sit, Mr. Plummer, and be responsible for the total package of this, and then when it fails, everybody looks at the City of Miami. That's my concern. Commissioner Plummer: All right. Commissioner, if I may try to give you some answers. Number one, because of the letter which we received, we have not had any contact with Mr. Arison. The only contact, to my knowledge - and this is secondhand - is Mr. Tony Ridder, who has been appointed by the Chamber of Commerce and the select committee has met with Mr. Arison. Second of all, Dade County will be involved, because after that four years, Dade County, most likely - and that is part of what we're talking today - will be building a new facility. And that will be coming from many sources, including a bed tax. And that, in fact, is part and parcel of the total package. I... And excuse me. I agree with you. I would have liked to have been able to come to this meeting today and give you exact numbers. But, sir, I can't give you something I don't have. Decoma has promised they were going to try to get them to me today. 6 February 27, 1996 Mayor Clark: You want to say something, Willy? Commissioner Plummer: I have not received them. I, hopefully, will get them tomorrow, because they want a binding obligation from this Commission on Thursday. Commissioner Dawkins: Well, let me leave you with this, Mr. Mayor, and my fellow Commissioners. Get everything from Decoma in writing. Commissioner Plummer: Absolutely. Including a contract, sir. Commissioner Dawkins: OK? Decoma told me that they would have a black concessionaire. That's the promise they made to us - to me - if we allowed them to have the Arena. When I went back to Mr.... That's why I'm sorry he isn't here. I hate to say things when a person isn't here. When I went back to Mr. Patonello (sic) to tell - I mean not Patonello. Mayor Clark: Patrinelli. Commissioner Plummer: Patrinelli. Commissioner Dawkins: Yeah, mm-hmm. When I went back to him and asked him, he says, "Decoma has a contract with Stevenson, who sells food concessions in all of our facilities. Therefore, you cannot get it." So get everything in writing, J.L., or don't participate. Commissioner Plummer: Commissioner, they are expecting to bring a contract - which we would accept or deny - on Thursday, and this Commission, if they accept it, will be a contract in writing, without any question, whatsoever. Mayor Clark: Any further questions? Commissioner Plummer: I have... Commissioner Carollo: Well, J.L.... Commissioner Plummer: I'm sorry. Commissioner Carollo: I'm a little lost, unless there... Commissioner Plummer: OK. Let me try to Delp you, if I can. Commissioner Carollo: Unless there's some other reasons why this meeting was called in an emergency basis, I do not understand... Mayor Clark: Well, let me stop you, Joe. Just a minute. Commissioner Carollo: Sure. Mayor Clark: Let me tell you this right now. We have a deadline for Mr. Arison in 16 days, some say 15 days, some say 30 days. And if we don't bring ourselves up to date, we can't wait 30 days to bring it up to date. And that's the reason I called it for this day. Commissioner Carollo: Well, I'm well aware of that, Mr. Mayor, believe me, but what... Commissioner Plummer: Joe, may I also include... 7 February 27, 1996 Commissioner Carollo: What I'm seeing in this here, that basically, from what our colleague is telling us, this is something that the Manager could have put to us in a memo, because we're not here today to take any action, make any decision... just to be informed. And what we don't need to do, I don't think, is to raise the expectations of the public, and then we're still saying the same thing, that all we're doing is negotiating. And nothing is concrete. We have nothing to vote upon that... We are not informing the public that anything finally has been accomplished. I mean... Commissioner Plummer: Joe, at such time when this... Commissioner Carollo: There's nothing that I've heard so far that could not have been put in a memo so that every member of the Commission could have been informed. Mayor Clark: Well, I think that this is the best way we can do it. You've been informed now, I've been informed. We have no input... Commissioner Plummer: Mr. Mayor. Mayor Clark: Yeah. Commissioner Plummer: At such time as this meeting was called, we did hope to have... Mayor Clark: ... some information at that time. Commissioner Plummer: ... the numbers at that time. Unfortunately, Mr. Blaisdell, obviously, has not had the communications that he needed to get those numbers back to us. Mayor Clark: Willy. Vice Mayor Gort: My understanding is all the negotiations that have taken place, we are in agreement. The County has been participating. Commissioner Plummer: Absolutely. Vice Mayor Gort: The only thing that's missing is the price that we were supposed to have gotten today. And I guess Mr. Blaisdell will be able to explain that. Commissioner Carollo: No. Commissioner Plummer: Well, no. Commissioner Carollo: No, no, no. Commissioner Plummer: Well, excuse me. That's... Commissioner Carollo: There are certain elements that are missing, besides the price. Commissioner Plummer: OK. But what I'm trying to... Commissioner Carollo: Including where the money is coming from. Commissioner Plummer: OK. One of the answers, Willy, has to be that we're waiting for the prices, and then they are waiting for this Commission to take action. 8 February 27, 1996 Vice Mayor Gort: No, J.L., I understand. I think that's very important, how we're going to pay for this, where we're going to get the money from. But first, we got to have the... Commissioner Carollo: Well, that's quite important. Vice Mayor Gort: ... price. So my understanding is we should have a memo tomorrow, which we will have a price on it, and the conditions, and that we're also going to have the sources of funds. Commissioner Plummer: Yes, sir. Mr. Cesar Odio (City Manager): Well, I think we should bring a memo if we are agreeing on the price. Commissioner Plummer: Yeah. Mr. Odio: If we don't, it's no sense. Commissioner Plummer: Oh, absolutely, if you don't, yes, sir. Mr. Odio: They may come up with a number that will be unacceptable, and then there's no sense. Commissioner Plummer: I think you'll be very... Let me say this to you. At this point, I think you will be very pleased with what has been worked out by the Manager of the City and the County, and they have come up with some numbers that are realistic and will work. Mayor Clark: OK. Anything further? Commissioner Plummer: Mr. Blaisdell. Mr. John Blaisdell: Mr. Mayor, may I have one minute to speak, please? John Blaisdell, here representing the Decoma Partnership. In trying to be as positive as I can in reporting the status of these discussions, it's important to try to bring somewhat of our perspective about these discussions that we've had with the City. First of all, from our perspective, and what's typical in these kinds of transactions, there's been no negotiation, per se. Pretty much, we've been here for... We've had several meetings with the City. Last night, the City and Commissioner Plummer made an offer. We indicated to them that the offer was unacceptable, and we indicated to them the reasons why the offer was unacceptable, and it specifically had to do with their understanding that the buyout included paying off the concessionaire, to which the Miami Sports and Exhibition Authority has a contract with. And we explained that we were never under the impression, from the beginning, and that what the City was talking about was apples, and what we were looking at was oranges. So I want to make it clear that although we came here, and we've been here for 45 hours, we've met twice for two hours, we're here to try to continue to meet, to try to make a deal happen, if we can. We want to help you keep the Heat in Miami. If this is one of the steps towards doing it, great. However, I want to be sure that there is no misunderstanding at this Commission. This is a complex transaction, and it requires the negotiation of several complex issues. We are prepared today - and we apologize, because we told the Commissioner and the Manager that we would have it for them by midday today or in the morning - but we have a document to leave with the City and the negotiating team this evening to look at. But I want to caution that there's still a lot of work to do. Commissioner Plummer: Absolutely. 9 February 27, 1996 Mr. Blaisdell: And we're here, ready, willing and able to get it done. Vice Mayor Gort: I'd like to ask a question of Mr. Blaisdell. Mr. Blaisdell: And I just want to be sure that that point was clear on the record. Commissioner Plummer: Mr. Mayor, if I may, let me put one... Mayor Clark: Just a moment. Mr. Dawkins. Commissioner Dawkins: I'm at a loss. Mr. Plummer said that nothing had been finalized. Commissioner Plummer: That's correct. Commissioner Dawkins: Mr. Plummer said that they talked with you. Now, you're saying that the City gave you an offer, and you rejected it. Mr. Blaisdell: That's correct. Commissioner Dawkins: So therefore, the City did put forth an effort to bring this to closure, but it was rejected by you. So, now, have you... Now, and Mr. Plummer understands your rejections. Commissioner Plummer: Yes, sir. Commissioner Dawkins: OIL. Commissioner Plummer: Let me... Please, I want to put something on the record, and I've made this in every meeting very, very clear. Any offer that we laid on the table was subject to the Commission's approval. Vice Mayor Gort: Sure. Commissioner Plummer: Absolutely. Mayor Clark: Mr. Gort. Vice Mayor Gort: Let me ask you a question. In doing your feasibility study, if the Heat was to leave, would your investment drop? Mr. Blaisdell: We're comfortable with the... what we have right now, and we believe that the team will be there for some time. Whether we negotiate the extension or you do, we're comfortable with our position. Mayor Clark: All right. Any further matter to come before this Commission? Commissioner Plummer: No, sir. Mayor Clark: Hearing none, we're... Commissioner Carollo: Well, Mr. Mayor, I'm sorry, but in the meeting that you called, it said that there was something else that was supposed to be discussed today - the future role of the Miami Sports and Exhibition Authority. I want to make sure you'll not forget to discuss this. Was there anything to be discussed on this? 10 February 27, 1996 Mayor Clark: I have no further discussion. Any further discussion? We're adjourned at six-o- six. THERE BEING NO FURTHER BUSINESS TO COME BEFORE THE CITY COMMISSION, THE SPECIAL MEETING WAS ADJOURNED AT 6:06 P.M. Stephen P. Clark MAYOR ATTEST: Walter J. Foeman CITY CLERK Maria Josephine Argudin ASSISTANT CITY CLERK 11 February 27, 1996