HomeMy WebLinkAboutItem #19 - Discussion Item1 —
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Tc Joseph R. Grassie
City Manager
11
FR:,�• Richard L. Fosmoen �_,.J
Assistant City Manager
July 17, 1980
4. Dinner Key Management Agreement
Enclosed are copies of the appraisals conducted by Peat, Marwick, Mitchell & Co.
and Real Estate Research Corporation on the management agreement previously
negotiated with Biscayne Recreation Development Corporation. The City
Commission approved the agreement in January 1980 and authorized the
City Manager to execute the agreement subject to the ordinance on rate
setting becoming effective. The agreement could not be executed until
appraisals were conducted in accordance with the September 1979 charter
amendment.
As you can see by the enclosed appraisals, Real Estate Research Corporation
has concluded that the proposed agreement provides for a fair return to the
City. Peat, Marwick, Mitchell & Co. has concluded that Biscayne Recreation
may receive an excessive return if rates escalate too quickly.
I have met with Biscayne Recreation and they have agreed to amend the January, 1980
agreement as follows:
4. CONSIDERATION
C. Consideration After Permitting or Receipt of Bond Proceeds
ADD TO LAST SENTENCE:
In no event shall the company's share of remaining money from gross receipts
exceed $100,000 annually.
4. CONSIDERATION
G. Revenues from Concessions
(6) CHANGE TO:
(6) Sale of fuel, however, the company shall pay the City
three percent of the price of each gallon of fuel pumped.
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Page 2
Further, the company has agreed by the attached letter of understanding
that the applicable provisions of the National Park Service Concessioner
Evaluation Program shall be used as the standards for the semi-annual
inspection of the facility.
Biscayne Recreation Development Corporation
7817 N. W. 72 Avenue
Miami, Florida 33166
Mr. Joseph R. Grassie
City Manager
City of Miami
Post Office Box 330708
Miami, Florida 33133
Dear Mr. Grassie:
This letter is to state our concurrence in the use of the applicable
provisions of the National Park Service Concessioner EvIaluation Program
as a basis for judging our performance for managing for you the Dinner
Key Marina as part of your semi-annual review.
Sincerely,
Paul Walker