HomeMy WebLinkAboutSummary FormAGENDA ITEM SUMMARY FORM
FILE ID:
0 2-ro-Y3/
Date: 4/26/07 Requesting Department: Public Facilities
Commission Meeting Date: District impacted: 2
Type: ® Resolution n Ordinance n Emergency Ordinance ❑ Discussion Item
❑ Other
Subject: Authorizing Exploration of Options in connection with potential disposition of James L.
Knight Center Complex
Purpose of Item:
The administration recommends the City Commission adopt the attached Resolution authorizing the
City Manager explore the various scenarios regarding the disposition and/or redevelopment of the
James L. Knight Center complex proposed by the Staubach Company, Northeast, Inc. ("Staubach");
further directing the City Manager to present at a future date an invitation for bid for the sale of the
North Side assets and to bring back recommendations concerning the redevelopment of the South
Side assets including an amendment, if required, to the agreement with the Staubach to implement
such recommendations.
Background Information:
See attached.
Budget Impact Analysis
NO Is this item related to revenue?
NO Is this item an expenditure? If so, please identify funding source below.
General Account No:
Special Revenue Account No:
CIP Project No:
NO Is this item funded by Homeland Defense/Neighborhood Improvement Bonds?
Start Up Capital Cost:
Maintenance Cost:
Total Fiscal Impact:
Final Approvals
(SIGN AND DATE)
CIP N/A Budget N/A
If using or receiving capital funds
Grants N/A Risk Management N/A
Purchasing ,ti ` '� Dept. Director
Chief City Manager 0
on il
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Subject: Authorizing I:;xploration of Options in connection withpotential disposition of James L.
Knight Center Complex
Background Information:
On September 12, 2006, following a competitive process, the City Commission adopted Resolution
06-0537 authorizing execution of an agreement with Staubach to provide real estate and financial
advisory services in connection with the possible disposition of the James L. Knight Center complex.
Said agreement provided for a fee of $200,000 for Phase 1 of the services related to pre -sale due
diligence and analysis, with funds allocated under B#70500. In the event the City elects to proceed
with disposition of the property, or portions thereof, Staubach would provide marketing and
disposition services for which they would 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 would be credited against any commission earned. In the event the City elects to acquire any
of the various property interests, Staubach would be paid 2% of the purchase price. Additionally,
Staubach would 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.
At this time, Staubach has completed the analysis portion of Phase I of its scope of work and has
identified five potential scenarios related to the Knight Center complex. In summary, they are as
follows:
1) Do Nothing/Status Quo
2) Sell the assets including the air rights leases and G4 parking garage on the north side of the I-
95 ramp
3) Market Sale of the Knight Center as an operating arena and the existing Hyatt Ground Lease
4) Market Sale or Redevelopment of the South Side assets via a new long term ground lease
5) Negotiate a new or amended lease with Hyatt
Staubach has determined that the City can maximize value and redevelopment opportunities for the
property by dividing the property into the "North Side" assets (north of 1-95 ramp) and "South Side"
assets (south of 1-95 ramp).
As it relates to the proposed disposition of the North Side assets, the administration seeks
authorization to prepare an invitation for bid for the sale of these assets for consideration by the City
Commission at a public hearing at a future date.
With respect to the South Side assets, the administration seeks authorization to explore the scenarios
that contemplate the redevelopment of the assets and/or amending or entering into a new lease with
the Hyatt. Following initial discussions with the Hyatt and the University of Miami, the City will
come back to the Commission with recommendations on the best way to proceed regarding the
redevelopment of the site along with recommendations for an amendment to the Staubach agreement,
if required, in order to implement said recommendations.
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