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Home My WebLink AboutR-82-0379s Mot: 82 5/11/82 1 RESOLUTION NO. 8 9 ; 7 9 i i A RESOLUTION RATIFYING THE CITY MANAGER'S NEGOTIATIONS AND SETTLEMENT OF CLAIMS AND COUNTERCLAIMS IN THE AMOUNT OF $5,250,000 BETWEEN THE CITY OF MIAMI AND MIAMI CENTER -_ ASSOCIATES, INC. BY ITS PRESIDENT, EARL S. WORSHAM, REGARDING THE DELAY IN COMPLETION OF THE CONFERENCE AND CONVENTION CENTER AS EVIDENCED BY THE ATTACHED LETTER OF INTENT BETWEEN THE PARTIES. BE IT RESOLVED BY THE COMMISSION Or -TV nF MIAMI, FLORIDA: Section 1. The ' ....ager's settlemeiic .ims and counterclaims in the amount of $5,250,000 between the City of Miami and Miami Center Associates, Inc. by its president, Earl S. Worsham, regarding the delay in completion of the Conference and Convention Center as evidenced by the attached Letter of Intent between the parties is hereby ratified. PASSED AND ADOPTED this llth day of May , 1982. LPH G. ONGIE, CITY CLERK PR PARED AND APPROVED BY: JO GE L FERNAN EZ % AS ISTANT CITY ATTORNEY V APPROVED AS TO FORM AND CORRECTNESS: GEORGE F. KNOX, JR., CITY ATTORNEY Ile, Maurice A. Ferre M A Y O R CITY COMMISSION MEETING OF MAY 1 1 1982 numm mW8 2, 3 7 t May 7, 1982 Earl S. Worsham, President Miami Center Associates, Inc. 100 North Biscayne Boulevard Miami, FL 33131 Dear Mr. Worsham: This will memorialize our discussions to date, and represents the City's proposal to compromise and settle our dispute concerning the delay in completion of the Conference and Convention Center. I. The Developer initially presented the following claims to the City: Claim Construction loan extension fee and increased interest expense Preopening expenses Permanent mortgage earnest money deposit Permanent mortgage loan fee Additional overhead Unpaid legal expenses Additional legal expenses Additional interest on permanent loan TOTAL . . . Amount $ 3,600,000 852,000 520.000 888,000 150,000 85,000 500.000 28,000,000 $ 34.595.500 t Earl S. Worsham,,.Iresident Page Two May 7, 1982 4 I II. The City initially presented the following claims/counter- claims to the Developer: Claim Amount \ Additional improvements to developer spaces $ 2,500,000 Cost of delay in completion of parking garage 120,000 Overtime expense 500,000 Developer's refinancing costs 34,595,500 TOTAL . . . $ 37,715,500 III. Pursuant to agreemement, the Developer rendered an adjust- ment to its original claim as follows: Original claim $ 34,595,500 x Reduction in construction loan costs (476,000) Elimination of developer overhead (150,000) Elimination of legal fees (585,000) Reduction in permanent loan costs (13,037,000) Increase in new permanent loan fees 447,000 TOTAL . . . $ 20,794,500 IV. After further negotiations, the City adjusted its position by acceptingg responsibility for preopening expenses pursuant to Section 8.2 (Pre-0 enin ) of the lease and agreement. Based upon a budget su mmiitt�Developer, the City's additional cost s $1,1 00. Therefore, the parties have agreed the Developer's final adjusted claim is reduced to $ 19,942,000 I o,82-379 8 Earl S. Worsham, President Page Three May 7, 1982 V. The parties agree that the final adjusted cost for comple- tion is finally established as $19,942,000. Further, the parties agree that 2/3 of these costs shall be borne by the Developer; and 1/3 of the costs shall be borne by the City, less $2,500,000 (the cost of improvements to Developer spaces): Final adjusted cost for completion Developer contribution (2/3) Total amount due by City Credit City advance for improvements to developer spaces Net additional amount due from City City's contribution to Preopening Expenses Total amount due from City $ 19,942,000 (13,294,700) 6,647,300 (2,500,000) $ 4,147,300 1,102,700 $ 5,250,000 VI. The parties mutually agree and covenant as follows: A. Developer will pay the City the sum of $15,000 per month beginning August 1, 1982, and continuing until the first revenue is received on the parking garage, or until April 1, 1983, which- ever is sooner. B. Developer will pay legitimate and mutually approved overtime claims of the City's Contractor, if any, incurred for the period I -lay 15, 1982, through September 15, 1982, relating to the Convention Center and Developer's spaceswithin the Con- vention Center, up to $500,000. C. The Construction Management Agreement will be renewed under the same terms and conditions as presently exist until the project is completed. D. Mutual releases, estoppel certificates, and other appro- priate legal documents will be executed by Developer and by the r.$2-:179 Earl S. Worsham, President Page Four May 7, 1982 City regarding the Lease Agreement, Construction Management Agree- ment, Turnkey Agreement, and all other matters and agreements, such that these matters will be forever settled and liability =_ one to the other released in consideration of this compromise agreement; all of which must be satisfactory to both parties, their respective counsel and lenders. E. The 'above sum of $5,250,000 is to be paid on or before June 1, 1982. Please review the foregoing matters and evidence your con- currence by your signature in the appropriate space by not later than Midnight, Sunday, May 9, 1982. It is understood that this proposal is not binding upon the City until the City Commission has formally approved same. Very truly yours, HOWARD V. GAR City Manager MIAMI CENTER ASSO IATES, INC. EARL S. WORSHAM President ... r.82-379 AN HYATT REGENCY MIAMI PRE -OPENING BUDGET (Assuming September 1982 Opening) Sales & PR Staff Employee Relocation Travel Expenses Advertising & Collateral Chain Advertising Office and Other Contingency 5/l /82 THRU TOTAL ORIGINAL INFLATION 9/30/82 REVISED $412,000 $112,000 $125,000 $649,000 100,000 20,000 -- 120,000 30,00 66,000 45,000 141,000 80,000 36,000 70,000 186,000 127,407 27,700 75,000 230,107 100,000 40,000 80,000 220,000 50,593 - -- -- 56,593 $900,000 $1,602,700 LESS DEVELOPER BUDGET 250,000 $1,352,700 LESS CITY BUDGET 250,000 PRE -OPENING INCREASE $1,102,700 I 82 -379 IL