HomeMy WebLinkAboutExhibit 6Greenberg
Traurig
Simon Ferro
Tel. (305) 574.0044
Fax(304) 470.0717
Ierrosll)gUaw,com
August 31, 2006
Mr. Pedro A. Hernandez
Manager
City of Miami, City Hall
3500 Pan American Drive
Miami , FL 33133-5595
Re: Request for Approval of Assignment of Contract between The City of Miami and
Sarmlento Advertising Group LLC
Dear Mr. Manager:
Our office represents Sarmiento Advertising Group, LLC (Sarmiento).
On April 18, 2002, Sarmiento executed an agreement with the City of Miami (City) for
the provision of bus benches for use by the general public within the City (Agreement).
Subsequent amendments to the Agreement were executed by the City and Sarmiento
on September 18, 2002, February 27, 2003, August 18, 2003 and July 20th, 2004
(Amendments).
In addition to the Agreement and the Amendments, the City and Sarmiento executed a
Professional Services Agreement (PSA) on July 28th, 2004 for the maintenance of City
bus shelters.
In accordance with Article IX, Section 9,3 and Article X, Section 10.8 of the Agreement,
Sarmlento respectfully requests approval of a proposed assignment of the Agreement,
as revised by the Amendments, to Fuel Miami, LLC, a .Delaware limited liability
corporation (FUEL).
When read together, the above two sections of the Agreement require the prior approval
and consent of the City Commission before the assignment, sale or transfer of the
Agreement. A sale or transfer of a majority of Sarmiento's stock or partnership shares
is considered an assignment of the Agreement. it is Sarmiento's intent, if approved by
the City Commission, to sell and transfer 100% of its stock to FUEL.
Likewise, Sarmiento requests acknowledgment by the City that the proposed
assignment of the Agreement to FUEL will not affect Sarmiento's rights under the PSA .
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Mr. Pedro A. Hernandez
August 31, 2006
Page 2
FUEL is a traditional Out -Of -Home Media Company, based in New York City, with a
nationwide presence and anextensive asset base of display panels, similar to
Sarmiento's, in Boston, New York, Philadelphia, Washington . D.C., Chicago, San
Francisco, and Los Angeles.
FUEL is active in 7 of the 15 largest DMA's in the U.S. and has a deep and
experienced management team. Fuel has the requisite management expertise, and, as
a portfolio. company of Och-Ziff Capital Management, a global institutional asset
management firm with over $18 billion of capital under management, the financial
backing to undertake the ownership of Sarmiento and otherwise perform under all
aspects of Sarmiento's Agreement with the City.
Most importantly, since FUEL is acquiring Sarmiento itself, the same management team
that has so ably performed on behalf of the City will remain in charge of the concession.
Enclosed for your review is additional background information on FUEL.
We understand that your office may require additional information on FUEL as a
potential assignee under the rights of the Agreement. Please feel free to contact my
office at your earliest convenience so we can facilitate all such information.
Please be informed that Sarmiento is currently in good standing under the terms of the
Agreement and the request for approval of assignment of the Agreement is not the
result of insolvency, bankruptcy proceedings or any other condition affecting
Sarrniento's ability to perform thereunder.
We respectfully request an expeditious review and disposition of Sarmiento's request
for approval assignment of its rights under the Agreement to Fuel. Sarmiento firmly
believes that FUEL will provide the same level of excellent service to the City that
Sarmiento has traditionally delivered under the Agreement.
Should you have any questions or comments, please contact my office at your earliest
convenience.
Sincerely,
mon Ferro
SF
Enclosures
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