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HomeMy WebLinkAboutR-96-0728J-96-1119 10/2/96 RESOLUTION NO. 9 6 '-' 728 A RESOLUTION, WITH ATTACHMENTS, AUTHORIZING THE CITY ATTORNEY AND THE CITY MANAGER TO ENTER INTO A STIPULATED SETTLEMENT (WITH EXHIBITS) WITH OVERTOWN VENTURES, INC., TO RESOLVE PENDING LITIGATION AND ARBITRATION PROCEEDINGS, WITHOUT ADMISSION OF LIABILITY, IN FULL AND COMPLETE SETTLEMENT OF ANY AND ALL CLAIMS AND DEMANDS ASSERTED AGAINST THE CITY OF MIAMI, IN CIRCUIT COURT CASE NO. 94-13825 CA 02, AND AAA ARBITRATION, CASE NO. 32 115 00122 95 BB. WHEREAS, Overtown Ventures, Inc., through its attorney, filed a claim and lawsuit against the City of Miami, in the Circuit Court of the 11th Judicial Circuit, Case No. 94-13825-CA 02, for damages and specific performance resulting from the City of Miami's alleged breach of the Lease Agreement (as amended) for i the Overtown Shopping Center; and } WHEREAS, the City of Miami, through the City Attorney, instituted arbitration proceedings against Overtown Ventures, ' Inc., by filing a arbitration demand before the American Arbitration Association, Arbitration Case No. 32 115 00122 95 BB, claiming damages and specific performance resulting from alleged 4 breaches of the Lease Agreement (as amended) for the Overtown t f Shopping Center; and k CITY COMMISSION MEETING OF OCT 1 0 1996 Resolution No. 96- 728 WHEREAS, Overtown Ventures, Inc., through its attorney, asserted a counter -demand in said arbitration proceedings against the City, of Miami, for damages and specific performance resulting from the City of Miami's alleged breach of the Lease Agreement (as amended) for the Overtown Shopping Center; and WHEREAS, the above claim, lawsuit and arbitration proceeding have been investigated by the Office of Asset Management and said Office recommends that said claim, lawsuit and arbitration proceeding be settled by stipulated settlement, in substantially the form attached hereto; 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 Attorney and the City Manager are hereby authorized to enter into a stipulated settlement (with exhibits) with OVERTOWN VENTURES, INC., in substantially the form attached hereto, after approval by the City Attorney as to form and correctness, to fully and completely resolve and settle any and all claims and demands against the City of Miami, which were asserted, or could be asserted, in Circuit Court Case No. 94-13825 CA 2, and American Arbitration Association, Arbitration Case No. 32 115 00122 95 BB. Section 3. This Resolution shall become effective immediately upon its adoption. 1 - 2 - 96- 728 rA r IN, THE CIRCUIT COURT OF THE 11TH JUDICIAL CIRCUIT, IN AND FOR DADE COUNTY, FLORIDA GENERAL JURISDICTION DIVISION CASE NO. 94-13825 CA 02 OVERTOWN VENTURES, INC., Plaintiff-', STIPULATED SETTLEMENT AND AGREED ORDER vs: CITY OF MIAMI, a political subdivision of the State of Florida, Defendant. STIPULATION WHEREAS, on September 12, 1988, the Plaintiff, OVERTOWN VENTURES, INC. (hereinafter "OVERTOWN VENTURES"), and the Defendant, the CITY OF MIAMI (hereinafter the "CITY"), entered into a LEASE AGREEMENT (hereinafter the "AGREEMENT") for the operation of a food store facility in the Overtown Shopping Center, located at 1490 N.W. 3rd Avenue, Miami, Florida, as described in said AGREEMENT; and WHEREAS, by mutual consent of the parties, said AGREEMENT was amended on November 7, 1988 (hereinafter "AMENDMENT NO. V) and on September 14, 1989 (hereinafter "AMENDMENT NO. 2"); and WHEREAS, on or about July 22, 1994, OVERTOWN VENTURES sued the CITY by the filing of a COMPLAINT in this Court (amended on April 18th, 1995), 96-- 728 STM%ji,ATED SETTLEMENT AND AGREED ORDER CASE NO.: 94-13825 CA 02 claiming a breach of the AGREEMENT (as amended), and seeking the relief of damages and specific performance (hereinafter the "LITIGATION"); and WHEREAS, although the CITY has never answered the COMPLAINT or AMENDED COMPLAINT, it denies the allegations of the COMPLAINT and AMENDED COMPLAINT; and WHEREAS, the CITY has given notice to OVERTOWN VENTURES by NOTICES OF DEFAULT dated October 11, 1994, November 14, 1994, and February 8, s 1995, claiming breaches of the AGREEMENT (as amended); and WHEREAS, on April 20, 1995, the CITY filed a DEMAND FOR ARBITRATION against OVERTOWN VENTURES with the American Arbitration Association, which is now pending under Case No. 32 115 00122 95 BB (hereinafter the "ARBITRATION"); and WHEREAS, the parties, recognizing the uncertainty of litigation and arbitration proceedings, and without the admission of fault or liability on the part of either party, are desirous of amicably settling the differences between them in both the LITIGATION and j the ARBITRATION, without the necessity of further cost, expense and attorneys fees; i NOW THEREFORE, OVERTOWN VENTURES and the CITY, by and through their respective undersigned attorneys, stipulate to the complete and final settlement of r this LITIGATION and the pending ARBITRATION, including the adequacy of i 1 consideration herein, on the following terms: 1. The above recitals are incorporated herein by reference. WB -2- ! 96- 728 r .� STII•uLATED SETTLEMENT AND AGREED ORDER CASE NO.: 94-13825 CA 02 2. The "date" of this STIPULATED SETTLEM -k shall be the date it is approved and entered as an Order by the Court. 3. Upon approval of this STIPULATED SETTLEMENT by the Court, the claims and causes of action asserted, or which could be asserted, by either party in this LITIGATION and in the pending ARBITRATION are hereby dismissed with prejudice and without costs, and are forever barred. 4. This STIPULATED SETTLEMENT shall be contingent upon the execution by each party of AMENDMENT NO. 3 of the LEASE attached hereto as EXFIIBIT A, which amendment, if not fully executed by both parties within sixty -(60) days of the date this STIPULATED SETTLEMENT is signed by the attorney for each parties (whichever is later), shall cause this STIPULATED SETTLEMENT to become null, void and of no force and effect, and the parties shall continue with the LITIGATION and the ARBITRATION as if there had been no settlement. This STIPULATED SETTLEMENT shall not be submitted to the Court for entry until and unless AMENDMENT NO. 3 is executed by both parties. 5. Within thirty (30) days of the date of this STIPULATED SETTLEMENT, the CITY will retain an expert contractor or engineer, at its sole expense, to determine if the grease trap was properly designed and/or installed. The report of the expert shall be binding on the parties. If the expert determines that the problem is being caused by defective design or installation of the grease trap, the CITY, at its sole expense, will promptly have it repaired to the satisfaction of the expert. However, if the problem is being caused by OVERTOWN VENTURES' insufficient maintenance of the grease trap epV v l� WB J 1. i t i i i i -3- 96- 728 j I ' 1 STL SLATED SETTLEMENT + AND AGREED ORDER CASE NO.: 94-13825 CA 02 or its plumbing system, the CITY will not be responsible for' any repairs thereof, and OVERTOWN VENTURES will be solely responsible for and be required to make all necessary repairs or maintenance. 6. Within ten (10) days of the date of this STIPULATED SETTLEMENT, the CITY will notify the American Arbitration Association to voluntarily dismiss with prejudice the pending ARBITRATION. 7. The CITY waives any claim it has against OVERTOWN VENTURES for: (a) past due rent; and (b) past due water and sewer bills in the amount of $16,006.78 as described in the CITY's Demand for Arbitration, dated April 20, 1995. The CITY hereby assigns its rights, if any, against any other third parties, for the aforementioned water and sewer bills, to OVERTOWN VENTURES. 8. OVERTOWN VENTURES shall reimburse the CITY for $41,486.06, representing the CITY's payment of the FP&L bill for electricity at the Supermarket. Beginning on the rent commencement date, the minimum monthly payment to satisfy this t amount will be $203.36. However, after the 10th year, interest will accrue at the rate of l 6% on the outstanding balance, if any. The CITY hereby assigns its rights, if any, against , any other third parties, for the aforementioned FP&L bill, to OVERTOWN VENTURES. 9. The CITY hereby gives its consent to the following subleases (which OVERTOWN VENTURES shall provide to the CITY within ten (10) days of the date of this Stipulation): (1) the flower business being operated in the rear (non-public areas) of FACILITY #1; (2) the African Boutique; (3) Corcel Corporation's import/export business r F ' being operated in the rear (non-public area) of FACILITY #1, adjacent to the interior WD -4- r STi . LATED SETTLEMENT AND AGREED ORDER CASE NO.: 94-13825 CA 02 entrance to FACILITY #2; and (4) a law office in FACILITY'k. To the extent that the uses involved in these subleases are inconsistent with the permitted uses stated in the AGREEMENT and amendments thereto, the CITY is waiving said use restrictions for these subleases only and no others. 10. The Court shall retain jurisdiction of this cause to enforce the terms of this STIPULATED SETTLEMENT. DATED: 00 �l DATED: a 0 DE LA CRUZ & CUTLER, P.A. A. QUINN JONES, III, City Attorney H. JEFFREY CUTLER, ESQ. WARREN BITTNER, Asst. City Atty. Attorney for OVERTOWN VENTURES Attorney for CITY OF MIAMI 241 Sevilla Avenue, Ste. 805 DuPont Plaza Center, Suite 300 Coral Gables, FL 33134 300 Biscayne Blvd. Way Tel: (305) 446-0100 Miami, FL 33131 Fax: 305) 445-7750 Tel: (305) 579-6700 Fax: (305) 579-33 9- By: By: IJ. F Y CUTLER, ESQ. W N BITTNER Fla. Bar No. 268933 sistant City Attorney Fla. Bar No. 370959 AGREED ORDER THE COURT, having considered the above STIPULATED SETTLEMENT, and being otherwise fully advised in the premises, it is ORDERED AND ADJUDGED that: 1. The foregoing STIPULATED SETTLEMENT is hereby approved. 2. This case is hereby dismissed with prejudice and each party shall bear their own costs and attorneys fees. All claims asserted herein by OVERTOWN VENTURES, -5- i i. t S i i i t t j STII ,ATED SETTLEMENT AND AGREED ORDER CASE NO.: 94-13825 CA 02 INC., or which could have been asserted herein by OVERTO" VENTURES, INC., up to the date of this STIPULATED SETTLEMENT, or which could have been asserted by the CITY OF MIAMI by counterclaim, up to the date of this STIPULATED SETTLEMENT, are forever barred. 3. The Court takes judicial notice of the claims asserted by the CITY OF MIAMI in the ARBITRATION. All claims asserted by the CITY OF MIAMI in said ARBITRATION, or which could have been asserted therein by the CITY OF MIAMI, up to the date of this STIPULATED SETTLEMENT, or which could have been asserted by OVERTOWN VENTURES, INC., by counter -demand in arbitration, up to the date of this STIPULATED SETTLEMENT, are hereby forever barred. 4. This Court shall retain jurisdiction to enforce the terms of this STIPULATED SETTLEAIENT. DONE AND ORDERED at Miami, Florida, this day of October, 1996. i t Honorable Mayor and Members TO : of the City Commission DATE : FILE Resolution Authorizing Execution of SUBJECTStipulated Settlement with Overtown f kti Ventures - Case No. 94-13825 CA 02 FROM. A. Llln n , REFERENCES: City Atto n City Commission Agenda ENCLOSURES: October 10, 1996 RECOMMENDATION: Attached is a proposed Resolution authorizing the City Attorney and the City Manager to enter into a Stipulated Settlement (with exhibits) with Overtown Ventures, Inc., in substantially the form attached thereto, to resolve a lawsuit filed by Overtown Ventures, Inc., seeking damages and specific performance to force the City to comply with its Lease Agreement (as amended) for the Overtown Shopping Center, pending in the Circuit Court, Case No. 94-13825 CA 02, and arbitration proceedings instituted by the City of Miami concerning the same Lease Agreement (as amended). The Stipulated Settlement was negotiated by the Law Department and the Office of Asset Management with Ricardo Corona, the President of Overtown Ventures, Inc., and is recommended for approval by the Law Department. f f { } I� i r t CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM44 Honorable Mayor and Members j TO of the City Commission DATE : SEP 3 0 1996 FILE Resolution Authorizing Execution of sue,Ecr Stipulated Settlement with Overtown Ventures - Case No. 94-13825 CA 02 FROM ; A. uln n ,III REFERENCES : City Atto n City Commission Agenda ENCLOSURES: October 10, 1996 I I i RECOMMENDATION: � Attached is a proposed Resolution authorizing the City Attorney and the City Manager to enter into a Stipulated Settlement (with exhibits) with Overtown Ventures, Inc., in substantially the form attached thereto, to resolve a lawsuit filed by Overtown Ventures, Inc., seeking damages and specific performance to force the City to comply with its Lease Agreement (as amended) for the Overtown Shopping Center, pending in the Circuit Court, Case No. 94-13825 CA 02, and arbitration proceedings instituted by the City of Miami concerning the same Lease Agreement (as amended). The Stipulated Settlement was negotiated by the Law Department and the Office of Asset Management with Ricardo Corona, the President of Overtown Ventures, Inc., and is recommended for approval by the Law Department. i 1 i f I i 96- 728 1