HomeMy WebLinkAboutSummary Form,; AGENDA ITEM SUMMARY FORM
FILE 10: QL —0
Date: 6/26/06 Requesting Department: Public Facilities
Commission Meeting Date: 2006 filiG Ili tri i atid: 2
Type: ® Resolution [] Ordinance ❑ Emergency Ordinance {l Discussion Item
D Other
Subject: Real Estate and Financial Advisory Services in connection with potential disposition of iarnes
L. Knight Center Complex
Purpose of Item:
The administration recommends the City Commission adopt the attached Resolution authorizing the;
City Manager to execute an agreement, in substantially the form attached, with Staubach Company,
Northeast, Inc. ("Staubach"), for the purpose of providing real estate and financial advisory services;
in connection with the potential disposition of the James L. Knight Center complex. Said agreement'
provides for a fee of $200,000 for Phase 1 of the services related to pre -sale due diligence and:
analysis, with funds allocated from CIP Project 311047 and 344102 under B#70500, In the event they
City elects to proceed with disposition of the property, or portions thereof, Staubach will provide.
marketing and disposition services for which they shall be paid a commission of 1.5% of the first $15
million and 3% of sale proceeds in excess of $15 million, per transaction, and the initial $200,000 fee
due for Phase l shall be credited against the commission earned. In the event the City elects to
acquire any of the various property interests, Staubach shall be paid 2% of the purchase price.;
Additionally, Staubach will be entitled to receive up to $50,000-in reimbursable expenses associated,
with engaging the services of an architectural firm to study re -use concepts.
Background Information:
See attached.
Budget Impact Analysis
NO is this item related to revenue?
YES Is this item an expenditure? If so, please identify funding source below.
General Account No:
Special Revenue Account No:
CIP Project No: 311047 & 344102 (B ' 70500)
NO Is this item funded by Homeland Defense/Neighborhood Improvement Bonds?
Start Up Capital Cost:
Maintenance Cost:
Total Fiscal Impact:
CIP
If using or re iving capital funds
Grants N/A
Purclasin'�
rIAMIEEW
Chief, 141-qiimus
[f -,/
Final Approvals
(S]GN AND DATE}
Buda
Risk Management
Dept. Director
City Manager
Net 1oti2
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Subject: Real Estate and Financial Advisory' Services in connection with potential disposition of Jaynes
L. Knight Center Complex
The City of Miami is interested in possibly disposing of the James L. Knight Center complex (the
"Property") that is located in downtown Miami, Florida. The Property encompasses the City's
Convention Center and the sites of the Hyatt Hotel and the UM Confcrenoe.Center, located at 400 SE 2
Avenue, Miami, Florida (collectively, the "Convention Center"); the Parking. Garage located at 100 SE 2
Street, Miami, Florida (the "Parking Garage"); the walkway between the Office Tower; and the
Convention Center. The Property consists of approximately 5.7 acres and is subjectio various leases.
To assist in this effort, the City issued a RFLI for real estate and financial advisory services. On April 6,
2006, the City Commission adopted Resolution 06-211 authorizing negotiation of a contract with the
Staubach Company, and in the event negotiations fail, to negotiate with the second ranked firm,
Cushman and Wakefield.
The City and Staubach have finalized negotiation of the contract. The contractprovides for two phases:
Phase 1 - Pre -sale Due Diligence and Analysis; and Phase 2 - Marketing and Disposition. The cost for
the Phase 1 services is $200,000, which amount will be credited against any corm -missions earned in the
event the City elects to proceed with a sale of the property, or a portion thereof. in the event the City
proceeds with a sale, Staubach shall receive a commission equal to 1.5% of the first $15 million of sale
proceeds and 3% of sale proceeds in excess of $15,000,000 on a per transaction basis. Additionally, in
the event the City elects to acquire any property interests in order to facilitate a disposition or
redevelopment, and the City requests Staubach to assist in such acquisition, Staubach would receive a
commission of 2% to be paid at the time of dosing. Staubach anticipates engaging the services of an
architectural fine to develop several re -use concepts for the site to present to and discuss with
stakeholders. Subject to the City's prior written approval of the architectural firm and the scope of work
to be conducted, the City shall reimburse Provider the actual cost of these services based upon
submission of an invoice and documents supporting the requested reimbursement, which cost for these
services shall not exceed fifty thousand dollars ($50,000).
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