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HomeMy WebLinkAboutR-92-0532J-92-550 7/22/92 RESOLUTION NO. 9 2' 532 A RESOLUTION RATIFYING AND APPROVING THE ENGAGEMENT OF THE LAW FIRM OF FINE, JACOBSON, SCHWARTZ, NASH, BLOCK AND ENGLAND ("FINE JACOBSON") TO SERVE AS COUNSEL BEFORE THE UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF FLORIDA, IN CONNECTION WITH THE CHAPTER 11 PROCEEDINGS FILED BY MIAMI CENTER ASSOCIATES, LTD., ("MCA") WITH FEES FOR SAID SERVICES IN AN AMOUNT NOT TO EXCEED $12,000.00; ALLOCATING FUNDS THEREFOR FROM THE CITY OF MIAMI'S SELF-INSURANCE AND INSURANCE TRUST FUND. WHEREAS, MCA, the hotel developer of the Hyatt Regency Hotel at the James L. Knight International Center ("Miami Convention Center") filed proceedings under Chapter 11 of the United States Bankruptcy Act; and WHEREAS, the City Attorney authorized employment of, and payments not to exceed $4,500 to, the law firm of Fine Jacobson _ to serve as legal consultant in the case of re: Miami Center Associates, Ltd., Case No.: 91-15467-BKC-AJC; and WHEREAS, contingencies have occurred which necessitate increasing the compensation to be paid to said firm, namely, Aetna Life Insurance Company has filed adversary bankruptcy court proceedings against the City of Miami and MCA (Adversary CITY COMMISSION MEETING OF 5EP 1 0 1992 Resolution No. 92- 532 Proceeding No. 92--0350-BEC-AJC-A) which require additional litigation, discovery and negotiations; and WHEREAS, although the law firm of Fine Jacobson has reached I` the maximum levels of its authorized compensation of $4,500, they have continued to provide excellent legal services to the City, pending authorization for additional funds by the City Commission; 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's engagement of the law firm of Fine Jacobson to serve as counsel before the United States Bankruptcy Court Southern District in connection with the Chapter 11 proceedings filed by MCA, is hereby ratified and approved, with fees for said services in an amount not to exceed $12,000.00 therefor hereby allocated from the City of Miami's Self -Insurance and Insurance Trust Fund. - 2 - 92- 532 VK p. Section 3. This Resolution shall become effective immediately upon its adoption. PASSED AND ADOPTED this 10th day of September 1992. XAVIER AREZ, MAYOR ATT T f' MATTY HIRAI CITY CLERK INSURANCE REVIEW: SUJAN S . CHHAB , CTOR DEPARTMENT OF BUDGETARY REVIEW: r+MAN. SURANO CITY MANAGER PREPARED AND APPROVED BY: i CARMEN L. LEON ASSISTANT CITY ATTORNEY APPROVED AS TO FORM AND CORRECTNESS: s C 0 . CITY AT EY CLL:rma 3064 - 3 - J.. 92- 532 CITY OF MIAMI, FLOAIDA INTEROFFICE MEMORANDUM to: Honorable Mayor and Members of the City Commission FROM . A. Quinn Jones, III City Attorney RECOMMENDATION: DATE . July 8, 1992 4r92-550 SUBJECT : Resolution Ratifying and Approving the Engagement of a Law Firm REFERENCES: Miami Convention Center ENCLOSURES: ( 1 ) It is respectfully recommended that the City Commission adopt the attached resolution ratifying and approving the engagement of the law firm of Fine, Jacobson, Schwartz, Nash, Block & England ("Fine Jacobson") to serve as counsel before the United States Bankruptcy Court Southern District of Florida in connection with the Chapter 11 proceedings filed by Miami Center Associates, Ltd., ("MCA"). The fee for this service is estimated not to exceed $10,000.00 and funds are available from the City of Miami's Self -Insurance and Insurance Trust Fund. BACKGROUND: MCA, the hotel developer of the Hyatt Regency Hotel at the James L. Knight International Center ("Miami Convention Center"), on November 4, 1991 filed a Chapter 11 bankruptcy petition. The City of Miami, including the Department of Off -Street Parking, is a creditor of MCA, furthermore, the City and MCA have certain mutual legal obligations because of the Lease and Agreement for Development pursuant to which the City leased to MCA in 1979 certain Air Space and Easements for a period of 45 years with an option to extend for another 45 years. In order to protect the City's rights in the bankruptcy proceedings, the City Attorney authorized the employment of the law firm of Fine Jacobson with payments not to exceed $4,500. Aetna Life Insurance Company ("Aetna"), MCA's mortgage holder, has filed adversary bankruptcy proceedings against the City and MCA and it seeks a declaratory judgment to determine the validity, priority and extent of Aetna's lien on the hotel. The Chapter 11 and adversary bankruptcy proceedings have required litigation, discovery and extensive negotiations which Fine Jacobson continues to perform pending authorization for additional funds by the City Commission.