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HomeMy WebLinkAboutR-93-0420J-93-398 6/28/93 RESOLUTION NO. 9 3- 420 A RESOLUTION INCREASING THE COMPENSATION TO THE LAW OFFICES OF FINE, JACOBSON, SCHWARTZ, HASH, BLOCK AND ENGLAND ("FINE JACOBSON"), SERVING AS COUNSEL FOR THE CITY OF MIAMI BEFORE THE UNITED STATES BANKRUPTCY SOUTHERN DISTRICT OF FLORIDA, IN CONNECTION WITH THE CHAPTER 11 BANKRUPTCY PROCEEDINGS FILED BY MIAMI CENTER ASSOCIATES, LTD. ("MCA"), WITH THE FEE FOR SUCH SERVICES NOT TO EXCEED AN ADDITIONAL $45,000; ALLOCATING FUNDS THEREFOR FROM THE CITY OF MIAMI'S SELF-INSURANCE AND INSURANCE TRUST FUND. WHEREAS, the City Commission, pursuant to Resolution No. 92-532, adopted September 10, 1992, authorized employment of, and payment to, the law firm of Fine Jacobson, to serve as counsel in connection with the Chapter 11 bankruptcy proceedings filed by MCA; and WHEREAS, contingencies have occurred which necessitate increasing the compensation to be paid to said firm, namely: MCA having filed three different reorganization plans which have been rejected by the court and which MCA is appealing; Aetna Life Insurance Company, MCA's principal creditor, engagement in protracted litigation; the City's filing of a motion to have the lease rejected; and additional hearings that will be required; and WHEREAS, it is estimated that MCA will remain under Chapter 11 for the next two years and that there will be CITY lcomassrox NEETIXG OF Resolution No. 93- 420 continuing disputes, negotiations and court hearings regarding the Air Rights Lease in the bankruptcy case; and WHEREAS, the law offices of Fine Jacobson has reached the maximum level of its authorized compensation set forth in Resolution No. 92-532; 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 compensation to the law offices of Fine, Jacobson, Schwartz, Nash, Block and England ("FINE JACOBSON"), serving as counsel for the City of Miami before the United States Bankruptcy Southern District of Florida, in connection with the Chapter 11 Bankruptcy proceedings filed by Miami Center Associates, Ltd. ("MCA"), is hereby increased in an amount not to exceed $45,000, with said funds for said services therefor hereby allocated from the City of Miami's Self -Insurance and Insurance Trust Fund. Section 4. This Resolution shall become effective immediately upon its adoption. PASSED AND ADOPTED this 8th day of July 1993. ,�C�� XAVIER L. SUAR , MAYOR ATTE MATTY HIRAI, CITY CLERK - 2 - 93- 420 w INSURANCE (a-2q- 4) StJAN S . BR.A, DIRECTOR DEPARTME 0 I ISK MANAGEMENT BUDGETARY REVIEW: 4L AN c 4y vvv/ MANOHAR S. SURANCI ASSISTANT CITY MANAGER PREPARED AND APPROVED BY: CARMEN L. LEON ASSISTANT CITY ATTORNEY APPROVED AS TO FORM AND CORRECTNESS: A. QU. J E , III CITY ATTORtyE CLL:ra:bss:M3631 o_« - 3 - 93- 420 \ CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM TO Honorable Mayor and Members of the City Commission p FROM A. Q inn , nes, III City At ' ney 22 DATE . June 28, 1993 F1 1-93-398 SUBJECT Increase in Compensation Bankruptcy Proceedings -MCA REFERENCES. City Commission Agenda July 8, 1993 ENCLOSURES: The City Commission, pursuant to Resolution No. 92-532, adopted September 10, 1992, authorized the employment of the law firm of Fine, Jacobson, Schwartz, Nash, Block and England ("Fine Jacobson") to serve as counsel in connection with the Chapter 11 bankruptcy proceedings filed by Miami Center Associates, Inc., ("MCA"), the holder of the Air Rights Lease at the Knight Center. The initial approved amount was $12,000. Since the original allocation of fees., MCA's third reorganization plan has been rejected and both MCA and Aetna Life Insurance Company, MCA's principal creditor, have filed appeals. The City also filed a motion to have the lease deemed rejected which the Bankruptcy Court denied but which the City has appealed. MCA may remain in bankruptcy through appeals for the next two years and there will be continuing disputes, negotiations and court hearings regarding the lease. Although Fine Jacobson has reached the maximum level of its authorized compensation set forth in Resolution No. 92-532, it has continued to provide excellent legal services to the City pending authorization for additional funds by the City Commission. Therefore, an increase of an additional $45,000 for legal fees to that previously approved is sought with funds being allocated from the City of Miami's Self -Insurance and Insurance Trust Fund. AQJ:CLL:ra:P224 93-- 420